April 30 (Bloomberg) -- RWE AG’s Net4Gas unit, the operator of natural-gas pipelines in the Czech Republic, plans an extension to hook up with Poland’s distribution network.
Part of the cost will be subsidized by the European Union, Milan Repka, a spokesman for Net4Gas, said today by phone. He didn’t give a value for the project.
Net4Gas is pressing ahead with the proposal even after RWE announced its intention to offer company for sale last year as part of its asset-reduction program.
“The plan for interconnecting Czech and Polish gas pipelines is valid regardless of RWE’s plans to sell Net4Gas,” Repka said. “The EU will finance only a part of the project.”
The pipeline operator will first gauge potential interest among gas traders and determine the economic feasibility of the project, Repka said. That will probably happen in 2015, a year before the actual construction begins, he said.
The project will require investment of 1 billion koruna ($53 million), E15 newspaper reported on its website, without saying where it got the information from.
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