CEC Briefs are our daily and weekly reports on a specific current topic of political or regulatory interest provided direct to our clients. The article archive is then posted here for open searches a month after it is sent out to our clients. Please revisit regularly for updated material. If you wish to receive our updates as they are released, please see our Intelligence Offer.
POLAND: Long-term LNG agreement with US
In bid to disconnect Poland from dependence on Russian gas supplies, flowing chiefly through Russian monopolist Gazprom, the state-run gas company PGNiG struck a 20-year deal with U.S.-based Venture Global LNG. The new agreement will now provide Poland with up to 2 million tons of liquefied natural gas per year, a quantity equivalent to 2.7 billion cubic meters of natural gas.
The contract was proposed, in part, after PGNiG filed a complaint against an EC proposition that would allow Gazprom to avoid multi-billion dollar fines. This decision came after Poland appealed that the giant was exploiting its position as the dominant gas provider of the region. Poland currently relies on Russia for about two-thirds of its gas, where domestic consumption represents a quarter of the Polish market.
Polish Prime Minster Mateusz Morawiecki told reporters in Warsaw on October 17 that “Today we can fulfil our efforts to improve the sovereignty, security, and competitiveness of our gas sector,” The contract will come into full force in 2022, when Poland’s current agreement with Gazprom for an annual 10 billion cubic meters of natural gas is set to conclude. A value for the deal, initially agreed in June, was not yet provided.