Poland has increased gas supplies from Russia by 7 percent year-on-year in January-August this year, the Polish PGNiG oil and gas company said Wednesday.
WARSAW (Pakistan Point News / Sputnik - 03rd October, 2018) Poland has increased gas supplies from Russia by 7 percent year-on-year in January-August this year, the Polish PGNiG oil and gas company said Wednesday.
"The Company informs that between January-August 2018, LNG accounted for nearly 20 percent of imports, while natural gas from Russia accounted for CA. 74 percent of imports. Compared to a similar period in 2017, between January-August 2018 imports of LNG have risen by nearly 64 percent, while imports of natural gas from Russia have increased by ca. 7 percent," the company said in a statement.
PGNiG noted that the volatility in annual and quarterly volumes of gas imports from Russia were not the result of any changes in the long-term import contract signed in 1996.
"Such volumes must always exceed minimal volumes imposed by Gazprom under take-or-pay clause, but they have always been smaller than maximal annual volumes agreed years ago in the long-term contract expiring in 2022," it explained.
The company noted that in addition to gas production in Poland, which covers approximately 25 percent of Poland's own needs, PGNiG increases gas imports from the growing number of countries, including from Qatar, the United States and Norway.
Gas consumption in Poland increased to 17 billion cubic meters (600 billion cubic feet) in 2017 from 15 billion cubic meters in 2015, the company recalled.
"These numbers represent the most dynamic increase in the history of the Polish market, and account for one of the biggest increases in Europe," PGNiG said.
At the same time, PGNiG continues efforts aimed at diversifying the sources and routes of gas supplies to Poland and is now preparing to start deliveries of gas produced on the Norwegian continental shelf to the Polish market. These gas deliveries via the proposed Baltic Pipe are expected to start in 2022.
"Furthermore, under multi-year contracts which are currently being prepared, beginning from 2022 PGNiG will have an annual portfolio of over 4 million tons of LNG coming from the USA (ca. 5.5 bcm following regasification)," the company said.
The contract with Russia, signed in 1996, envisages deliveries of 10 billion cubic meters of gas to Poland annually. The deal is valid until 2022. In 2012, the prices were reduced by 10 percent, but in 2015, PGNiG filed a complaint with the Stockholm arbitration court demanding new reduction of prices from Gazprom in line with the European gas market trends at that time.
