UPDATE 1-Polish LNG terminal faces 6-month delay-treasury
* Says delay due to builders woes
* Sticking to unrealistic deadline risky-treasury minister (Adds details)
WARSAW, Sept 10 (Reuters) - Poland's proposed liquefied natural gas (LNG) terminal will be delayed by six months because of financial problems plaguing its builders and is now expected to be completed by the end of 2014, the treasury ministry said on Tuesday.
Poland hopes that LNG together with shale gas will help the nation become less dependent on gas imports from Russia, where the former Soviet satellite state receives most of its supplies.
"The key reason for the delays to date has been the crisis in the construction services market in 2012," the treasury ministry said in a statement.
The move toward LNG may also come at a high cost for Poland due to the steep price the country will have to pay for supplies from Qatar. Shale gas exploration and extraction is also an expensive proposition.
Earlier this year Polskie LNG, the state-controlled company responsible for the investment in the new terminal, denied that issues with builders would delay the terminal in Swinoujscie on the Baltic Sea.
Treasury Minister Wlodzimierz Karpinski said sticking to an unrealistic schedule would be more costly and riskier than accepting a delay. The treasury minister is overseeing the project.
"This will enable us to take care in time of all issues related to the investment," he said in the statement. (Reporting by Agnieszka Barteczko; editing by Michael Kahn and James Jukwey)
- Tweet this
- Share this
- Digg this
- Tesco accounting black hole deepens, chairman to step down |
- Iraqi security forces and Kurds gain ground against Islamic State
- Germany's Merkel deals blow to UK on EU migration reform - Sunday Times
- Caterham and Marussia to miss next races - Ecclestone
- Belgium chocolate maker ISIS needs to change its name again