Saipem-Led Consortium Wants up to $49M More for Building Polish LNG termina

Reuters

WARSAW, July 19 (Reuters) – The consortium that built Poland's new liquefied natural gas (LNG) terminal has filed a request for an additional payment of up to $49 million for the project from Polskie LNG, which operates the facility, a consortium member said on Tuesday.

Polish construction company PBG, part of the consortium which was led by Italy's Saipem and also included Italy's Techint Compagnia Tecnica Internazionale, said in a statement that the consortium had filed a request for arbitration against state-owned Polskie LNG for building the terminal.

It did not say exactly what work the additional payment would cover but the project was subject to numerous delays.

The LNG terminal at the Baltic Sea, which cost around 3 billion zlotys, was completed last year, a year later than scheduled, and received its first spot gas cargo in June this year.

"The consortium will take legal steps to secure an additional payment connected with the realisation of the ... contract amounting to no more than 195 million zlotys net ($49 million)," PBG said in a statement.

PBG said the consortium will file at a later stage a formal suit against Polskie LNG, which is owned by the state gas pipelines operator Gaz-System.

PBG, currently in bankruptcy proceedings, has limited its share in the consortium, and said the arbitration will not have an impact on its future revenue. ($1 = 3.9574 zlotys)

(Reporting by Marcin Goettig; Editing by Susan Fenton)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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