According to earlier announced plans, PGNiG plans to build a 2bn cubic metre Liquefied Natural Gas (LNG) terminal for US$ 400-500m until 2010 according to PNB. However, experts cited by the news agency said, that such an investment could not be profitable due to its small size, and indicated that at least 4bn cubic meter capacity would allow the repayment of debt incurred for constructing the terminal.
Our view: We see the news as negative, as if the terminal would be not profitable, PGNiG could face difficulties in finding a partner for the project. However, the project is not a real surprise to us, as the government has already indicated its plans to build an LNG terminal.