PGNiG insists it won't invest in Polish coal

By bne IntelliNews November 6, 2015

PGNiG is not considering investing in Poland’s ailing coal miner Kompania Weglowa (KW), the CEO of the Warsaw-listed oil and gas company told reporters on November 6. 

Alongside two other state-controlled energy companies - PGE and Energa – PGNiG has been earmarked by the outgoing Civic Platform government to invest in KW, which is at the centre of a plan to bail out the struggling coal mining industry. Poland’s largest coal miner, like the entire sector, is struggling with low market prices and inefficient production.

The government’s plan assumes PGNiG, PGE, and Energa would invest in state-owned investment company TF Silesia into which KW assets would be transferred. However, the state companies have been resisting.

The rescue plan is now up in the air since the October 25 election. The populist Law and Justice (PiS) will form a new government later this month, but despite making support for the country's miners a centrepiece of its campaign, it has said little about its plans

Warsaw is anticipating wide ranging changes in senior management of state companies under the new administration, suggesting PGNiG's defiance could be a bold move. "We are not specialising in coal. We're not competent in that. Also, coal is competition to fuels we are dealing with," CEO Mariusz Zawisza told a news conference, according to PAP.

As oil prices remain low, PGNiG appears more interested in upstream oil and gas. Deputy CEO Zbigniew Skrzypkiewicz said on November 6 that the company is looking at potential acquisitions, although no deal should be expected this year.

 

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