PGNiG to spin off gas trading operations in 2003

The Economy Ministry wants to separate gas trade from the state-owned gas monopoly PGNiG in 2003, after which the company should be gradually restructured and privatised. The Ministry did not present any specific schedule of the restructuring process. Deputy Economy Minister Marek Kossowski said, however, PGNiG would first spin off 23 gas trade companies, which would be then privatised with a possible engagement of municipal governments. He said it would be possible for municipalities to combine gas and power trade with water sales in the future as well. Then, there will be six distribution companies created independently of PGNiG, while the company would still own an oil and gas research and exploration company, and will also focus on storage, shipping and imports of gas. It would also continue to be responsible for the so-called long-term energy contracts. In the third stage, some 49% of gas distribution operations is to be privatised and at the same time PGNiG would sell its gas research and exploration company. Only in the fourth, last stage of the process, PGNiG would withdraw from gas supply and open to competition, which would lead to its privatisation. At that time, gas shipping and storage operations will also be privatised. Kossowski also said that the Economy Ministry predicted a 20-30% growth of the gas distribution market in the first few years after gas trade operations were spun off from PGNiG. kp,bb