OAO Gazprom (OGZD) - Gazprom and PGNIG reached agreement on gas price
RNS Number : 4358Q
06 November 2012
October 6, 2012
Gazprom and PGNIG reach agreement on gas price
Warsaw hosted a working meeting between Alexander Medvedev, Deputy Chairman of
the Gazprom Management Committee and Grażyna Piotrowska-Oliwa, President of
the PGNiG Management Board.
The meeting resulted in an agreement to adjust prices in the contract on
natural gas supplies to Poland.
Alexander Medvedev and Grażyna Piotrowska-Oliwa signed the Supplementary
Agreement to the contract to adjust the price for natural gas supplies to
Poland via the Yamal - Europe gas pipeline. The agreed price takes into
account the current market prices of gas and oil products. At the same time,
the basic principles of gas trade have been preserved intact, like long-term
contracts, take-or-pay principle and oil-pegged prices. The spot component,
taking into consideration the state of play of the Polish market, will not be
included directly into the contract.
The Agreement allows for termination of the proceeding by the Arbitration
Institute of the Stockholm Chamber of Commerce (SCC).
"We have found a mutually acceptable mechanism of the Russian gas price
adjustment which introduces into the contracts, in a flexible way, certain
changes that have occurred on the gas markets in Poland and Europe. The fact
that we have reached an agreement proves that reliable partners are always
able to find a mutually beneficial solution which maintains the balance of
interests of both parties," Alexander Medvedev said.
"By signing this agreement Gazprom and PGNIG have shown that through
business-focused negotiations we can find a positive solution, beneficial for
both sides. This is a crucial step in the path of restoring competitiveness of
PGNIG long-term gas contracts," Grażyna Piotrowska-Oliwa noted.
PGNiG is Poland's largest petroleum company dealing with oil and gas fields
development, energy resources production, storage and transportation, oil and
gas transmission network construction and expansion, as well as natural gas
exports and imports.
In 2011 Gazprom supplied Poland with 10.25 billion cubic meters of Russian
The contract on Russian gas supplies to Poland and the contract on Russian gas
transit via Poland are effective until 2022 and 2019 respectively.
This information is provided by RNS
The company news service from the London Stock Exchange
MSCEAFFKEEPAFFF -0- Nov/06/2012 11:09 GMT
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