Saturday, December 7, 2019

Poland Ends Major Russian LNG Contract

November 17, 2019

Pic: Gazprom

Poland's state gas company PGNiG says it had notified Russia's Gazprom that it will not renew their long-term deal on liquefied natural gas (LNG) supplies when the agreement expires after 2022.

In accordance with the provisions of the Yamal Contract, three years prior to its original termination date, i.e. by December 31st, 2019, the parties are required to submit a declaration whether or not they intend to continue their contractual relationship beyond 2022.

Gazprom Export, the gas-exporting arm of state-controlled Gazprom, confirmed in a statement to Reuters that it had received the notification from PGNiG.

“In line with the Republic of Poland’s aspiration to achieve security of energy supplies and seeking to deliver the PGNiG Group’s current strategy, over the past four years we have taken a number of important steps to diversify the sources of natural gas supply to Poland,” said Piotr Woźniak, President of the PGNiG Management Board.
 
Woźniak added: "We have concluded long-term LNG supply contracts and have been acquiring natural gas deposits on the Norwegian Continental Shelf, which, combined with the activities of the transmission system operator to expand the gas pipeline system, makes it possible for us to terminate the Yamal Contract on the originally set date,” said Piotr Woźniak, President of the PGNiG Management Board.

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