Polish PGNiG, Tauron to build $576 mln power plant

STALOWA WOLA, Poland, June 1 (Reuters) - Poland's gas monopoly PGNiG PGNI.WA and state-controlled utility Tauron will build a 1.8 billion zloty ($576 million) gas-powered electricity plant, PGNiG chief executive said on Monday.

PGNiG and Tauron will each invest 450 million zlotys, with the remaining 450 million to be financed with bank loans.

"We are interested in co-financing the power block of 400 megawatts and in supplying natural gas to it," said PGNiG CEO Michal Szubski.

He did not give further details on the bank loans.

PGNiG sells about 14 billion cubic metres of gas annually and aims to increase its sales through a push into the coal-dominated energy sector.

The cooperation with Tauron is the monopoly's most advanced project in the sector. If completed, it will increase PGNiG's sales by about 0.5 billlion cubic metres annually.

By 1155 GMT, PGNiG shares gained 1.1 percent to 3.83 zlotys, underperforming a 3.4 percent rise of Warsaw's WIG20 .WIG20 index. (Reporting by Wojciech Zurawski, writing by Patryk Wasilewski; Editing by David Cowell)