Polish State Gas Company to Deal with Russia’s Gazprom

The Polish state gas company PGNiG said Friday it has notified Russia’s Gazprom that it will not extend a long-term deal on gas imports when it expires in three years, Finam.ru reported.

The announcement comes as Poland has been working to reduce its dependence on Russian energy sources, which Moscow has sometimes used as a tool of political pressure on its partners. These efforts include striking long-term contracts for deliveries of liquefied natural gas from the United States, Qatar and other countries, as well as developing a new pipeline with Norway for deliveries from the North Sea.

PGNiG said that, in line with the provisions of the deal, it had sent Gazprom, which is controlled by the Russian state, notice that it will terminate the contract as of Dec. 31, 2022. It said Poland will continue to have enough energy after that date.

Poland receives gas from Russia through the 2,000 km-long Yamal-Europe transnational gas pipeline. The Polish section of the gas pipeline belongs to EuRoPol Gaz SA – a joint venture of  Gazprom, PGNiG and the Polish Gas-Trading SA. The Polish section includes 683 km of the linear part and 5 compressor stations.

Poland and Russia entered into a contract for the purchase and sale of natural gas in 1996. The validity period of the Yamal contract is until December 31, 2022. In accordance with the document, the parties to the contract are required to submit a declaration of further cooperation after 2022 three years before its expected end.

According to the PGNiG board, the measures taken by the group to diversify gas supplies to Poland after 2022 allow the completion of the Yamal contract in accordance with its provisions, the company said.