Poland’s PGNiG threatens legal action over EU deals with Gazprom

By bne IntelliNews October 27, 2016

Polish state-controlled gas utility PGNiG claimed on October 26 that it is ready to sue the European Commission and Germany's energy regulator for their soft approach to Russian gas giant Gazprom

Poland and other CEE member states that rely on Russian gas have long claimed Gazprom abuses its dominant position in the region to push prices higher, insist on restrictive contracts, and exert political pressure. An EU anti-trust case launched in 2011 offered hope that the Russian company would be brought into line. However, it is reported that a settlement is on the way that will see little action from Brussels.

The Polish company is also angered a decision from the German energy regulator Bundesnetzagentur that will offer more capacity on the Opal pipeline, the link to the offshore Nord Stream carrying Russian gas directly to Germany. The restriction on Opal effectively limits the volumes flowing via the 63bn cubic metre pipeline.

Bundesnetzagentur has opened up to 80% of Opal pipeline capacity to Gazprom or its proxies. That will allow the Russian company to send 28bn cm of gas annually through Nord Stream, whereas previously the export volume was capped at 17.5bn cm.

“If no other entity purchases the remaining 20% of the pipeline’s capacity during auctions, Gazprom will be allowed to use that capacity for its own needs," the PGNiG statement complains. "Based on the current declarations by market participants it is clear that none of the European gas shippers is interested in using the additional transmission capacity."

The Polish company says the moves on both the anti-trust case and Opal constitute a breach of EU laws, and a threat to energy security. “These decisions pose a real threat to the stability of gas supplies to Central and Eastern Europe,” PGNiG warned.

If Gazprom can bring more gas directly to Germany, it will be able to stop transporting gas via the Yamal pipeline crossing Poland, and bypass Ukraine, without any consequences for West European markets, PGNiG warns. Gazprom is currently pushing plans to build Nord Stream 2, which has raised alarm in Poland and other CEE states.

 

 

 

Related Articles

Russia's Rosneft scraps last major project with ExxonMobil

Russia's largest oil company Rosneft and US hydrocarbon major ExxonMobil have given up joint extraction development in the Gulf of Mexico, following the  abandonment of Arctic their planned ... more

Romanian investor to build $700mn power plant in Iran

Iran and Romania have signed an initial agreement to build a 1,000MW power station in Mehran near the Iraqi border in a $700mn joint project, IRNA news agency reported on November 30 after Iranian ... more

Iran agrees to output cap of just under 3.8mn b/d

All Organisation of Petroleum Exporting Countries (Opec) members agreed on November 30 to cut their oil output to 32.5mn b/d, with Iran agreeing to cut “theoretical output” to just under ... more

Register here to continue reading this article and 2 more for free or 12 months full access inc. Magazine and Weekly Newspaper for just $119/year.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

IntelliNews Pro subscribers click here

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

Thank you for purchasing a bne IntelliNews subscription. We look forward to serving you as one of our paid subscribers. An email confirmation will be sent to the email address you have 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.

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

IntelliNews Pro subscribers click here

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.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

Thank you. Please complete your registration by confirming your email address. The 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