The agreement with Energinet.dk on the developmentof the Baltic Pipe project makes part of the policy to connect Polandwith Scandinavian fields, which is currently pursued by PGNiG. TheBaltic Pipe is linked with the Skanled project, i.e. the gas pipelinethat will connect Norway with Sweden and Denmark, with potentialextension to Poland through the Danish gas transportation system.

-   The understanding with Energinet.dk is animportant step towards achievement of our strategic goal, i.e.diversification of the directions of gas supply to Poland. Furthermore,PGNiG is analyzing the options for transmission of gas from its Skarvand Snadd fields and for the imports of Norwegian gas through theSkanled pipeline using the Danish pipeline grid and the Baltic Pipe -said Krzysztof G?ogowski, President of the Management Board of PGNiG.

PGNiG will consider the possibility of financing theinvestment into the Baltic Pipe project independently. This would meanthat, at the same time, the pipeline would be owned by the Polish Oiland Gas Company.

Due to commercial considerations, PGNiG andEnerginet.dk will also prepare an option that provides for thepossibility of supply between Poland and Denmark in both directions.From this perspective, the Baltic Pipe can be looked at as aninterconnection project that will give both parties increasedflexibility in shaping their commercial policy. 

The cooperation with Energinet.dk in respect of gassupply and transmission projects in the European liberalized market isyet another example of the growing international activity of PGNiG. TheSteering Committee of the Consortium established for the development ofthe Skanled project, during its today's (2 May) meeting held in Oslo,accepted the application of PGNiG for participation in the Consortium.The process of formal accession of PGNiG to the Consortium is expectedto be finalized by the end of May 2007.