Polish Briefing 27 February, 2018 9:00 am   
Editorial staff

Polish Briefing: Fear of sanctions pushes investors away from Nord Stream 2

What goes on in Poland on the 27th of February.

PGNiG has discovered a new gas field in Podkarpacie

The newly discovered gas field is located within the Lubliniec-Cieszanów license area. Initial analyzes indicate production capacities of 20 million cubic meters of natural gas per year.

PGNiG discovered a new multi-level natural gas field at a depth of 700 m. Exploration and appraisal works are carried out in the Cieszanów commune in the Lubaczów poviat. The Nowa Sioło-1 exploration well is currently at the stage of deposit tests. Initial analyzes indicate production capacities of 20 million cubic meters of gas annually. Analysis of the final geophysical measurements indicates the presence of several gas-bearing horizons.

– This is another recent discovery in Podkarpacie. We use new search methods there with great success – says Piotr Woźniak, President of the Management Board of PGNiG SA. – We are planning two more exploration wells in this region and then we will be able to determine the resource potential. It will also allow us to develop a strategy for managing these shallow gas horizons – he adds.

The new discovery lies north of the Lubaczów natural gas reservoir and southeast of the Lubliniec-Cieszanów natural gas field. PGNiG has the exclusive right to conduct exploration and appraisal work within this concession.

Złoże Nowe Sioło. Źródło: PGNiG

Fear of sanctions pushes investors away from Nord Stream 2

Potential investor in Nord Stream 2, the Italian bank Intesa Sanpaolo, is afraid of sanctions against the project. Uncertainty may end in March.

Antonio Fallico, the director responsible for the Russian branch of the institution, admitted in a conversation with Reuters that he is considering co-financing Nord Stream 2, a disputed gas pipeline from Russia to Germany, whose construction may start this summer. However, the bank needs “clarity about the sanctions”.

Americans are considering sanctions towards participants of the gas pipeline project with Russian capital. The threat of their approval by the US president is pushing investors away from Nord Stream 2, because they could be subjected to restrictions.

Fallico also stated that Intesa is waiting for decisions of the European Commission regarding the gas pipeline. The Commission proposes a revision of the gas directive, which could force the project to adapt to EU anti-monopoly requirements, which would affect its profitability.

Due to regulatory uncertainty, Intesa did not decide to co-finance Nord Stream 2 in 2017. The Austrian OMV admitted that after US sanctions, project financing could become “virtually impossible”, as informed by

– Regardless of it, everything should become clear after the presidential election in Russia – said the manager of the Italian bank. They will take place on March 18 this year. It is not known whether on the eve of the election the Americans will decide on sanctions. It is not known whether the construction of the disputed gas pipeline will start in March and whether this will happen before the adoption of new European Union regulations.