Tuesday, February 2, 2016

PGNiG sued Gazprom to the Stockholm arbitration – Republic

Polish Oil and Gas Company demands from the Russians in international arbitration reductions in the price of gas sold to us as part of a long-term Yamal contract. The previous negotiations – conducted between companies from the end of 2014. – Did not produce results. PGNiG hopes that Gazprom will bow and, without waiting for the judgment, shall consult with the company. So it was, when in 2012. Polish company first initiated arbitration proceedings against the supplier. Then they managed to negotiate 25 percent. vent and change the pricing formula.

political movement?

– I doubt that now was able to repeat this scenario. Then in our favor appealed strong arguments market. Poland in terms of price drastically lagged other European customers of Gazprom. Today, however, we pay for gas prices close to those on the spot market – said Grazyna Piotrowska-Oliwa, former president of PGNiG.

In 2015, per 1,000 cubic meters. Russian gas Polish company paid less than 230 dollars. This is almost half less than it was in 2013. It is estimated that this year the price of raw materials will continue to fall. Analysts say that now we can pay Gazprom even slightly less than $ 200. per 1000 cubic meters.

– After the change the pricing formula in the Yamal contract its conditions are no longer so dramatically negative . PGNiG court may earn little – explains a representative of one of the companies analyze gas market.

In his view, the proceedings before the court it may take many months or even years, and the judgment is not a foregone conclusion. He claims that the referral to arbitration is a sham operation, and not focused on actual business effect. – It’s a move that should be considered rather in a political context. Do not be surprised if the Russians spite PGNiG filed counterclaim for a rise in prices for Polish – adds our correspondent.

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