Poland is on track with the construction of its liquefied natural gas port and will complete it in 2014 despite obstacles, Treasury Minister Mikolaj Budzanowski told reporters Thursday.

"The project is being carried out with persistence and will be ready in 2014. Contrary to reports of various troubles, we are on schedule," Mr. Budzanowski said.

Poland is building the LNG terminal in Swinoujscie, northwestern Poland , as part of its multi-pronged drive to diversify its sources of energy away from Russia . It has an agreement with Qatar for deliveries of LNG, which may start in 2013 after the LNG port is completed.

According to earlier reports in local media, the construction is several months behind schedule due to financial difficulties faced by the general contractors on the government-owned project, Italy 's Saipem SpA (SPM.MI) and Poland 's PBG SA (PBG.WA). PBG in June filed for bankruptcy protection.

Gaz-System , Poland 's state-owned gas pipeline operator responsible for building the 2.7 billion zloty ($855 million) terminal on the government's behalf, on Thursday signed the final financing deal needed to finish the project.

Under the agreement, the European Bank for Reconstruction and Development will lend Gaz-System PLN300 million for 12 years. The project is financed with a mix of funds from the EBRD, the European Investment Bank, Gaz-System's own coffers, and European Union funds.

If the LNG terminal isn't completed on time, Poland risks having to pay for liquefied gas it has pre-ordered, but won't be able to receive.

Poland hopes to turn the future LNG port into a natural gas-trading hub for central and northern Europe . At present, its gas firm, PGNiG SA (PGN.WA), relies on gas imported from Russia to cover most of demand from Polish customers.

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