Polish Briefing 1 July, 2020 9:00 am   
Editorial staff

Polish Briefing: The first gas supply from Poland to Ukraine via a virtual point on the border

What goes on in Poland on the 1st of July.

The first gas supply from Poland to Ukraine via a virtual point on the border

President of the Ukrainian gas pipeline operator OGTSU, Serhiy Makogon, announced that the first gas supply from Poland to Ukraine took place on July 1st using a virtual point to manage physical supplies through physical points in Drozdowicze and Hermanowice.

– Today we have set another milestone in Ukraine’s integration with the European gas market – writes Makogon on Facebook. – The first 5,4 million cubic meters of gas will reach Ukraine today.

The CEO reminded that creating a virtual point in accordance with European regulations allows for flexible trade in the capacity of available gas connections on one internet platform. – The full integration of Ukraine with the European gas market and the availability of alternative sources and routes for gas supplies guarantees Ukrainian customers energy security and fair gas prices – stated the president of OGTSU.

Gazprom transferred an overpayment for overpriced gas to PGNiG’s account

Russian Gazprom has reported that it has refunded the entire overpayment for gas sold to the Polish company PGNiG. This is the implementation of the judgment of the arbitral tribunal in Stockholm, which in the dispute between these companies ruled in favor of PGNiG, which believed that the price of the raw material was too high.

However, Gazprom continues to uphold its request to the tribunal to appeal against this decision. PGNiG had previously reported that it had agreed with Gazprom a repayment of USD 1,5 billion in adjudicated overpayment by July 1 this year. This date is to result from the annex to the Yamal agreement signed by these companies.

On June 15, PGNiG announced that it had signed an annex to the Yamal contract with Gazprom regarding the sale of gas to Poland. It was signed on June 5, 2020 in electronic form, and then, by June 15, 2020, signatures were submitted and the original documents were exchanged. In the annex, the parties confirmed the rules for applying the price formula for the purchase of gas supplied under the Yamal contract, as indicated in the final judgment of the Arbitration Court in Stockholm, issued on March 30, 2020. In addition, it sets out the conditions for mutual settlement between the parties of financial effects arising from the application of the new price formula with retroactive effect from November 1st 2014.