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19.03.2007 Tender for expansion of the UGS facility in Wierzchowice

On 16 March 2007, Polskie Górnictwo Naftowe i Gazownictwo SA(PGNiG) announced a tender for expansion of the Underground Gas Storage(UGS) facility in Wierzchowice. 

The tender will lead to selection of a contractor that will beresponsible for the development of the surface facilities of theWierzchowice UGS. The investment will enable an increase of the storagecapacity from the current level of 0.5 bcm to 1.2 bcm. 


The tenderwill be held in accordance with the regulations of the PublicProcurement Law. The contractors can submit applications for admissionto the procedure by 10 May 2007.
The Wierzchowice UGS is locatedin a depleted gas field near Milicz, in Lower Silesian Voivodeship.Currently, it is the larges gas storage facility in Poland.
PGNiGhas six underground storage facilities with total working capacity of1.63 billion cubic metres. By 2012 PGNiG plans to increase the storagecapacity up to 2.85 bcm through expansion of the existing facilitiesand construction of new ones (in Daszewo, Bonikowo and Kosakowo).


Atthe moment, expansion of the salt cavern underground gas storagefacility in Mogilno is underway, where two new caverns are beingdeveloped. It is the only storage facility in Poland located in saltcaverns. The remaining gas storage facilities owned by PGNiG arelocated in depleted natural gas fields.


PGNiG is also preparingfor expansion of the UGS facility in Strachocina near Sanok. Theannouncement of a tender for this project is planned, at the latest,for the beginning of the year 2008. In the meantime, the constructiondesign will be completed and the permits required for expansion will beobtained. As a result of the expansion, the storage capacity willincrease up to 330 million cubic metres (from the current level of 150million cubic metres). The completion of the expansion is scheduled for2011.

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