Polish PGNiG' s LMG upstream project comes on stream
BY MATYNIA KRYK
POLAND -- Polish controlled natural gas utility PGNiG said it has completed construction of its Lubiatow Miedzychod Grotow oil and gas investment, which is expected to double Poland' s domestic crude production.
PGNiG' s LMG project, with a $543 million price tag, consists of 14 oil and gas production wells and oil and complementary pipeline infrastructure in the area.
PGNiG expects its annual production of crude to double to about 1 mt, due to this investment.
In the startup phase of LMG, which will last six weeks, the wells will produce at 25% of projected crude oil capacity. Utilitization will then rise to 50% and then 100%, PGNiG said in a news release.
Documented recoverable reserves in the Lubiatow, Miedzychod and Grotow area are 7.25 mt of crude and about 7.3 Bcm of natural gas, PGNiG said. Poland' s annual natural gas consumption is about 14 Bcmpy.
The LMG facility will also enable PGNiG to increase conventional domestic gas production, a goal of the Polish government aimed at freeing the central European country from dependence on gas imports from Russia.
Dow Jones Newswires