Russia's Gazprom, Poland's PGNiG to start joint project talks

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Working groups established by Poland's state gas delivery monopoly Polskie Gornictwo Naftowe i Gazownictwo SA (PGNiG) and Russian gas giant Gazprom will start planning joint energy and mining projects in February, Polish newspaper Dziennik Gazeta Prawna reported on Tuesday.

Working groups established by Poland's state gas delivery monopoly Polskie Gornictwo Naftowe i Gazownictwo SA (PGNiG) and Russian gas giant Gazprom will start planning joint energy and mining projects in February, Polish newspaper Dziennik Gazeta Prawna reported on Tuesday.

Two Russian-Polish working groups will discuss construction of gas power stations in the south-east of Poland, the paper said.

"There are no large consumers in that part of Poland, annual gas consumption amounts to 250-300 million cubic meters," the paper quoted Radoslaw Dudzinski, a PGNiG representative, as saying.

If the power plant is constructed, gas demand in the region will jump by over 100%.

The plant's capacity should be least equal 400 MW. "This is a break-even point for such investment," Dudzinski added.

The working groups will also discuss joint upstream projects including exploration and extraction of hydrocarbons.

In December 2010 several media sources said that Gazprom and PGNiG also planned to produce gas jointly in Russia and added that the construction of a joint power station would be financed by either EuRoPol Gaz (a Gazprom-PGNiG joint venture) or by other joint ventures.

MOSCOW, February 8 (RIA Novosti)

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