Tuesday, May 11, 2021

Russian media suggest that gas supply to Poland should be cut off immediately

 The Russian media are sounding the alarm that Poland intends to "appropriate" part of the Yamal-Europe gas pipeline. They also call on Moscow to take more active pre-emptive action, including halting gas supplies.

The Russians claim that Gaz-System's plans show that the Polish gas transmission operator intended to take over part of the transmission system and use it to operate the LNG terminal. They are sounding the alarm that as a result, Gazprom may lose up to 6 billion m3 of the market.

"Warsaw intends to take over Gazprom's shares in the mentioned section." They suggest that Poland may secure Yamal as part of the penalty imposed on Gazprom worth nearly $7.8B, the case is currently before the Consumer Protection Court after the Russians' appeal. "Warsaw may also start introducing actions aimed at artificially lowering the market value of assets (of Yamal-Europe)."

Moscow is clearly dissatisfied with the development of gas relations with Poland in recent years. The end of the contract in 2022 and the painful arbitration ruling between PGNiG and Gazprom, as a result of which the Russians had to pay PLN 6 billion to the Polish company, do not keep Kremlin happy. 

Poland is diversifying supplies and in addition to the expansion of the LNG terminal in Świnoujście and the construction of another one in Gdańsk, Gaz-System is constructing the Baltic Pipe, a gas pipeline through which it will be able to transport gas from Norway, via Denmark to Poland.