Poland plans not to renew long-term gas contract with Russia

By bne IntelliNews May 31, 2016

Poland will not renew its long-term gas contract with Russia after it expires in 2022, a government official told an industry conference in Warsaw on May 30.

Poland may buy Russian gas if the price is attractive, but purchases would “definitely not be based on a long-term contract formula”, Piotr Naimski, the government proxy responsible for strategic energy infrastructure, said at conference on investments in Eastern Europe, organised by Reuters. Poland uses about 15bn cubic meters (cm) of gas annually, and typically around two thirds of this comes from Russia.

However, according to Naimski, Poland now has options to reduce gas purchases from the eastern neighbour. The country’s LNG terminal is about to receive its first cargo in June and, once in full operation, it will be able to take in 5bn cm of gas. Poland is already mulling expanding the terminal’s capacity to at least 7.5bn cm of gas, with would be nearly equal to the 8bn cm Warsaw purchased from Russia in 2015.

Other than the terminal, Poland is also looking to build a gas pipeline linking Polish gas utility PGNiG’s Norwegian production assets to Poland via Denmark. Naimski also said Poland can cover its demand for gas with spot purchases from the German gas exchange.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Uzbekistan aims for reform-driven GDP outcome of $200bn by 2030

Uzbekistan's government officials are talking about a new phase of governance, marked by transformative economic and social reforms. GDP has doubled over the past five years to surpass ... more

Uzbekistan to restrict solar panel imports from 2025, will favour BNEF Tier-1 suppliers

Uzbekistan will impose a ban on importing solar panels, inverters and energy storage systems from manufacturers not listed on the Bloomberg New Energy Finance (BNEF) Tier-1 ranking starting January ... more

Uzbekistan targets 10-15bn kWh of electricity exports to Europe by 2030

Uzbekistan plans to export 10-15bn kWh of electricity to Europe by 2030, as announced by Deputy Energy Minister Umid Mamadaminov during the European Economy Days, as ... more

Follow Us On

Most Read

  1. PANNIER: Central Asia faces tough race against clock to prevent water crisis
    7 days ago
  2. Russia’s economy is tougher than it looks, no chance of a crisis in the next 3-5 years – CASE
    12 days ago
  3. Russia ready to start peace talks in January, willing to make some “limited” concessions
    6 days ago
  4. COMMENT: The EU’s Internal Security Framework is unfit for Cold War 2.0
    5 days ago
  5. G20 summit wraps up with a joint statement strong on sentiment, but short on specifics
    7 days ago
  1. What would a Trump win mean for Latin America?
    22 days ago
  2. LONG READ: Georgian Dream’s hold over rural areas won it the election
    24 days ago
  3. Russia’s economy is tougher than it looks, no chance of a crisis in the next 3-5 years – CASE
    12 days ago
  4. Russia overtakes Germany to become fifth biggest economy in the world in GDP on a PPP basis
    1 year ago
  5. Mass protest in Serbia’s Novi Sad over deadly station canopy collapse turns violent
    21 days ago

Reports

Dismiss