PGNiG will take up 100% of the shares in the company. The share capitalof the company will amount to 28 million zlotys. By the end of 2007,the share capital will be increased, in aggregate, by 22 millionzlotys. The company will be based in Swinoujscie.

In the initialphase the newly established company will be responsible for, amongother things, obtaining the consents and administrative permitsrequired for the construction of the LNG terminal and the execution ofthe front end engineering design (FEED). Next, the company will selectthe General Project Contractor to build the receiving terminal forliquefied natural gas.

The construction of the LNG terminal on thePolish coast is one of the strategic investments that will enablediversification of the natural gas supply to Poland and will enhancethe security of natural gas supply for the customers of the PGNiGGroup.

Polish Oil and Gas Company is developing the project of LNGterminal construction in Swinoujscie in line with the adopted schedule.Currently, the project is in the design and implementation phase. Inparallel, the talks with potential suppliers of the liquefied naturalgas to Poland are underway. The investment execution phase will startas of 2008. The completion is scheduled for the end of the year 2010.