Poland faces rush on Norwegian gas link to end Russian dependency

By bne IntelliNews September 15, 2016

Poland will need to secure commercial commitments for its planned gas pipeline from Norway via Denmark as soon as the first quarter of 2017 to ensure the pipeline can cover for the absence of Russian gas by 2022 - when the country's long term contract with Gazprom ends - an industry conference heard on September 15.

The planned link, known as Baltic Pipe, is a major element in Poland’s bid to diversify gas supplies before 2022. A government official told the oil, gas, and chemicals conference in Warsaw that the contract with the Russians will not be renewed. It is not the first time Polish officials have made that claim, but given the challenges, it may be a calculated negotiating tactic rather than a realistic stance.

"The contract expires in 2022 and there are no reasons or plans to extend it on current terms," Poland's proxy for strategic energy infrastructure, Piotr Naimski, said according to PAP.

Gazprom supplies more than two-thirds of the 16bn cubic metres of gas Poland uses each year. Warsaw, however, is pushing to reduce and eventually end entirely that dependency. The country’s new LNG terminal has a capacity of 5bn cm, and Poland says it plans to expand it to 7.5bn cm at some point in the future.

Should Poland end purchases from Russia, the remainder of gas could be supplied by the Baltic Pipe, Pawel Jakubowski, development executive at Polish gas infrastructure operator Gaz-System claimed.

However, to make sure the Baltic Pipe is up and running in time for Poland to increase its leverage in any talks with Gazprom, there would need to be commercial commitments by gas companies for the project by the end of March 2017, the development director of Danish gas grid operator energinet.dk, Soren Juel Hansen, told the conference.

Following an initial period marked by an apparent lack of enthusiasm on the part of the Nordic country, Hansen reports that Poland has now secured Denmark’s support for the project, which would link to Norwegian gas fields operated by Polish utility PGNiG. Energinet.dk is currently working on a feasibility study for the Danish section of the pipeline.

Related Articles

Overlooked carbon costs spell financial trouble for Western Balkan coal power plants

Ten coal-fired power plant projects across the Western Balkans are facing serious financial problems as they have not taken properly into account carbon costs, according to ... more

Poland eyeing second LNG terminal

Gaz-System has selected a contractor to carry out a feasibility study on the construction of a second Polish LNG terminal, the state-owned gas grid operator said on March 27. Poland has recently ... more

Latvia heads off Russian gas mischief with legislation on strategic companies

The Latvian parliament passed amendments to national security and commercial laws on March 23, handing the state the power to block the sale of companies considered strategic. The legislation will ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss