Polish Briefing: PGNiG will not pay Russia in rubles | Poland talks with Naftogaz about gas supplies

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What goes on in Poland on the 25th of March.

PGNiG will not pay Russia in rubles

PGNiG reveals that it has enough gas in its portfolio to trade it on those European markets, which are becoming independent of gas from Russia. However, it refuses to pay in rubles as requested by the Russians.

„I cannot talk about the details of trade agreements concluded with our partners, because they are covered by business secrets, but I will illustrate the differences in price levels between the American and European markets by referring to the Henry Hub charts compared to TTF or THE. The prices at Henry Hub, and therefore of course also LNG, are rising in global contracts, but these are not the crazy fluctuations we are dealing with as a result of Russian price manipulation on the European market. The local fluctuations are more predictable and can be effectively secured,” said the PGNiG CEO Paweł Majewski in response to a question from BiznesAlert.pl.

„The Yamal contract, the details of which I cannot reveal, provides for a method of settling the payments,” said Majewski in response to the Russians’ demand to pay for the contracts in rubles.

Poland talks with Naftogaz about gas supplies

Polish PGNiG is talking about a gas contract with Ukrainian Naftogaz, but Russia’s attack on Ukraine is a challenge.

„We are also in talks with Naftogaz,” admitted the president of PGNiG Paweł Majewski. „It should be remembered that this area is exposed to military hostilities, therefore the key element is securing physical and financial transactions,” he added.

PGNiG has a contract with the privately owned ERU, which has already received dedicated deliveries from the LNG terminal, but also regular deliveries from the market. „It is not that these are the same molecules that arrived at the LNG terminal, because it is ultimately about the amount of gas that will reach the Polish border with Ukraine,” Majewski admitted.