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Europe Daily Bulletin No. 10209
Contents Publication in full By article 13 / 20
GENERAL NEWS / (eu) eu/energy

Günther Oettinger confident that Poland/Russia gas agreement will be reached

Brussels, 07/09/2010 (Agence Europe) - At the end of a bilateral meeting with the Polish minister for the economy, Waldemar Pawlak, in a backdrop to the informal Energy Council on Monday 6 September, the European commissioner, Günther Oettinger, said that he was confident that an agreement would be reached between Poland and Russia on extending Russian gas supplies and transit until 2037. The European Commission had expressed reservations about the validity of the gas contract between Polish energy supplier PGNiG and Gazprom from Russia, with regard to Community legislation. Most of the doubts focused on the EuRoPol Gaz company, owned by Gazprom and PGNiG (both have a 48% stake in the company), and which controls the Polish section of the Iamal gas pipeline and channels Siberian gas to Europe. The Commission wanted assurances that other gas operators would have access to the pipeline at fair prices. Commission doubts also focused on weak inversion flows from gas pipeline links to the Polish border and on the lack of price transparency provided by the Gaz-System gas network management company, owned by PGNiG. Oettinger's spokesperson, Marlene Holzer, explained that the former was confident that “an appropriate solution can be found that satisfies Poland, the EU and Russia and which complies with European legislation”. Under the terms of the new agreement, Gazprom and PGNiG will restructure EuRoPol Gaz in order for them each to control 50% of the capital in EuRoPol Gaz. The conflict broke out in 2006 when the Polish partners decided to raise the cost of transiting gas through its section of the Iamal-Europe pipeline. Gazprom opposed the rise because it has to pay for transiting the gas. In summer 2008, Gazprom and PGNiG began a procedure to resolve the matter amicably. In 2009, the Polish company proposed that Gazprom's stake in EuRoPol Gaz be raised to 50% and that the litigation on transit prices be closed. (E.H./transl.fl)

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