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Polish PGNiG decided to apply for a price discount under the Yamal contract with Gazprom

Polish PGNiG decided to apply for a price discount under the Yamal contract with Gazprom

Warsaw, November 3 - Neftegaz.RU. Poland's state-controlled PGNiG has applied for renegotiating the contract price of gas supplied by Gazprom under the Yamal contract. It has been added that the purpose of the renegotiation is to lower the price.

PGNiGstates that “it applied for a renegotiation of the price conditions for natural gas supplies under a long-term contract with Gazprom and exercised its contractual entitlement and submitted an application to Gazprom and Gazprom Export to change the price of gas supplied under the gas purchase and sale agreement to Poland of 1996 (the so-called Yamal contract) towards its lowering”.

Gazprom Export said November 2 it had received the request from PGNiG to revisethe price in the contract for gas supplies. "The right of each party to request pricing revision once in 3 years in the case of certain circumstances is foreseen in the contract," the company told S&P Global Platts.

The Yamal contract, signed in 1996, was amended and annexed several times. It provides for the supply of about 10 billion cubic meters of gas annually. According to the take-or-pay clause imposed by Gazprom, PGNiG must collect at least 8.7 billion cubic meters of contracted gas annually.

Poland declared that they would not extend the contract after 2022, having alternatives in the form of LNG and the Baltic Pipe gas pipeline from Norway.