Source: Bloomberg
Polish company will insist on the tribunal to adapt the conditions of the Yamal contract to the situation on the European gas market, including mainly a reduction in raw material prices.
The Polish Oil and Gas Company directed to Gazprom and Gazprom Export’s call for arbitration before the Court of Arbitration in Stockholm. It calls for changes in pricing conditions in the Yamal contract, or long-term agreement for the purchase of natural gas a compact 25 September 1996. PGNiG reports that Gazprom aimed to call starts the arbitration procedure provided for this contract. According to the company an indication of the amount in dispute and the date the dispute is not currently possible.
– Negotiations in the six-month window, a negotiation formula specified in the agreement with Gazprom did not give fully satisfactory results, because the Board of PGNiG decided to refer the case to an arbitral tribunal – explains Mariusz Zawisza, president of PGNiG, quoted in a press release. He added that entering the path of arbitration is one of the procedures provided for in the Yamal contract. – Refer the case to be resolved by the arbitral tribunal does not mean that the company is still open to dialogue with his business partner. PGNiG is ready to conclude an agreement that will guarantee the company and its customers favorable, embedded in the realities of the market price – Zawisza says.
PGNiG obtained the basis for the commencement of arbitration proceedings in early May. Then it relapsed within six months of submission of the company’s application for a renegotiation of the Yamal contract price. According to the Management Board of PGNiG’s actions are aimed at adjusting the conditions of the contract to the situation on the European gas market.
The Yamal contract is valid until 2022. By virtue Poland can import from Russia to 10.2 billion cubic meters. per year. Under the so-called. clause of take-or-pay, should pick up at least 85 percent. Annual gas volumes contracted. Last year, however, PGNiG bought under this agreement 8.097 billion cubic meters. blue fuel (combined consumption in Poland was then about 16 billion cubic meters.). Therefore acquired raw material accounted for only 79.4 per cent. the amount specified in the contract. PGNiG could not buy him any more, because Gazprom has reduced the order Skladná by the company.
Currently, the price of Russian gas in the Yamal contract is determined both on the basis of the rate of oil and gas spot prices prevailing on the international markets. For the second quarter of 2012. It was determined only in relation to the rate of oil.
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