Poland chems could face gas cuts if Russia supply deal fails

16 September 2010 16:06  [Source: ICIS news]

PRAGUE (ICIS)--Poland's gas monopoly has drawn up a list of 20 companies, including chemical producers, that may face supply cuts from December if Russia and Poland fail to agree a new long-term gas deal, a source at the company said on Thursday.

"The present agreement ends on October 20 and Poland will be lacking up to 2bn cubic metres of gas if a new deal is not put in place, so we inevitably have to draw up this standby list," said a source at the monopoly, PGNiG.

Polish oil, chemical and petrochemical group PKN Orlen, including nitrogen fertilizer subsidiary Anwil, and largest Polish fertilizer producer Zaklady Azotowe Pulawy (ZAP) were on the list, she added.

Both the Polish and the Russian governments have yet to initial a drafted long-term gas supply deal,  which increases annual deliveries to as much as 10.2bn cubic metres (cbm) from about 7.4bn cbm, following an intervention from the European Commission.

The EU's Energy Commissioner Guenther Oettinger said the commission wanted to ensure the deal was compatible with EU law in terms of points such as pipeline access to third parties and pipeline tariffs.

However, he added that he was "optimistic" that Poland, Russia and the EC could find a way to get the deal done in good time.

ING bank oil and gas analyst Tamas Pletser said: "This is the usual political game over the control of transit pipes across Poland. But Gazprom is happy to sell in these times, especially for contract prices, which are well above the spot prices.“ Like Oettinger, Pletser was confident a deal was within grasp.

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By: Will Conroy
+44 20 8652 3214



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