Poland’ s PGNiG gas monopoly has struck a gas delivery deal with Russia’ s Gazprom, extending the current contract supplying Russian gas to Poland until 2037 and expanding supplies to a maximum of 10.2bn cubic metres a year. The deal, announced by PGNiG on Thursday, was reached in Moscow after 10 months of negotiations. It also extends the current agreement allowing the transit of Russian gas across Poland via the Yamal pipeline through 2045.
The agreement reportedly includes a discount for PGNiG in return for unpaid Russian transit fees for gas delivered to Germany, one of the main reasons for the delay in reaching a deal. It must still be approved by the Polish government. Poland currently imports about two-thirds of its gas, or about 8bn cubic metres, most from Russia. The reliance on Russia has been controversial, and the government is constructing an LNG terminal on the Baltic to allow for the import of gas from elsewhere. However, the terminal will only come online in five years’ time.
The current severe winter has underscored the need to expand Poland’ s gas supplies from current levels. Earlier this week PGNiG was forced to limit supplies to big industrial customers such as chemical maker ZCh Police.
Poland was affected by the decision to sideline RosUkrEnergo, a middleman supplying Russian and Turkmen gas to Ukraine and Europe, from the gas trade. Poland had received 2.3bn cubic metres a year from that source.
Author: Jan Cienski
