Poland claims its dependence on Russian gas decreasing
The Polish oil and gas company PGNiG in its press release reported the increase in import of liquefied natural gas (LNG) into the country. According to the company, although the volume of gas purchased in Russia has also increased, its share in total imports amount has decreased.
In January-July 2018, LNG shipments to Poland increased by 0.6 billion cubic meters (by 60%) compared to the same period last year. These LNG supplies to Poland came from Norway, Qatar and the United States. Over the same seven months, the increase in gas imports from Russia amounted to 0.4 billion cubic meters (6%).
Altogether, the share of Russian gas in Poland's imports for this period was 75% and compared to last year fell by 2%. The share LNG imports for this period increased to 19%.
The company notes that Poland also conducts diversification of its gas sources. In addition to LNG purchases, by 2022, when the long-term contract with Russia will end, gas will be delivered to Poland from Denmark via the Baltic Pipe gas pipeline. It will also be filled with gas from the Norwegian shelf. In addition, it is expected that by 2022, under the long-term contracts, Poland will annually receive more than 4 billion cubic meters of gas from the United States.
The contract for the supply of gas from Russia to Poland ("Yamal Contract"), signed in 1996, is valid until 2022. This contract provides the supply of 10 billion cubic meters of gas. In October 2010, then-Deputy Prime Minister Igor Sechin and his Polish colleague Waldemar Pawlak signed two new protocols in addition to an intergovernmental agreement to increase the volume of gas supplies and change Yamal-Europe gas pipeline management. In 2012, Gazprom and PGNiG signed an additional agreement to this contract, which, as stated by the Polish side, was supposed to reduce the price of gas by 10%. However, Warsaw continued to seek new discounts on the "Yamal contract" and in 2015 initiated the process of filing a lawsuit in Stockholm arbitration court. On June 30, 2018, the PGNiG press service reported that the interim decision of the arbitration took the Polish side. However, on July 2, Gazprom announced that the arbitration refused to reduce the price.