Following Polish Oil and Gas’s (PGNiG) successful EUR 1.3 bn arbitration case against Gazprom “the Russians will try to attract Polish attention with lower gas prices,” Jakub Wiech, the Deputy Editor-in-Chief of Energetyka24 told PolandIN.
See the full interview here.
Gazprom is unlikely to challenge the case in a civil court, in Mr Wiech’s view, as this would only “involve additional costs.” However, he thought that Gazprom may try to offer cheaper prices for gas going forward rather than paying the amount under arbitration in cash for PGNiG’s overpayment for gas supplies since 2014.
“That's what Gazprom did when the Lithuanians built their own floating LNG terminal in Klaipeda,” the Energetyka24 deputy editor-in-chief explained, referring to the gas facility that came online in 2015 on the Baltic coast of Poland’s northern neighbour. After that the Russians decided “to significantly lower the prices offered to the Lithuanians.”
“Diversification of supply creates competition in order to lower prices,” Mr Wiech said. PGNiG has limited the amount it imports directly from its eastern supplies via the Yamal pipeline under a ten-year deal which elapses in 2022 to the minimum amount, which is 8 billion cubic metres.
In the meantime the LNG terminal on Poland’s Baltic coast has been delivering gas shipments from Qatar and the US and shortfalls have been purchased from German and Czech supplies of Russian gas which up till now have worked out cheaper than buying it directly from the Russians.
The Baltic Pipe project is to be completed in 2022, which will give Poland direct deliveries from North Sea fields.