GAS LNG 8 August, 2019 10:00 am   
COMMENTS: Maciej Woźniak

Has the Russian ambassador been mislead? PGNiG on Gazprom’s gas price and LNG

The Russian ambassador in Poland argues in an interview with Onet that Poland buys gas from outside Russia more expensive than it could buy in that country. Was he misled? PGNiG Vice President Maciej Woźniak comments.

LNG from the USA is cheaper than gas in the Yamal contract

– I am afraid that Mr. Ambassador was mislead and was given a note about the gas market intended for the Russian ambassador in Germany or France. In these countries and in Western Europe, Russia actually sells gas at market prices. But in Central Europe, in Poland, Gazprom sells natural gas at prices much higher than market prices of this raw material in Europe – commented PGNiG’s Vice President Maciej Woźniak.

– Each of the LNG supply contracts from the US signed by PGNiG in 2018 had 20-30 percent more favorable and market conditions, including liquefaction, transport costs and other fees than the contract terms offered by Gazprom under the Yamal contract until 2022. To put it simple – since the beginning of 2016, we have not bought a single cubic meter of natural gas on conditions worse than those offered to us by Gazprom. Diversification beneficial for the entire Polish market is our priority. In 2020, we expect at least 39 LNG deliveries to Świnoujście – emphasized Woźniak.

The final dispute over the gas price for Poland may take place in the fall

– Our experience in commercial relations with Gazprom is the fourth year of arbitration dispute before the arbitration tribunal in Stockholm regarding Gazprom’s inflating gas prices for Poland. The Court in a partial judgment confirmed our right to demand a price change, we are currently awaiting a final judgment, which may take place in a few weeks this fall – said Woźniak

– In relations with business partners, we value the reliability and security of supplies along with the competitive offer, and these are definitely lacking on the side of the Russian supplier, who has several unannounced interruptions in gas supplies to Poland for unexplained reasons – added the PGNiG vice president.