OAO Gazprom OGZD Gazprom and PGNIG reached agreement on gas price

  OAO Gazprom (OGZD) - Gazprom and PGNIG reached agreement on gas price

RNS Number : 4358Q
OAO Gazprom
06 November 2012




                                      

                                   RELEASE

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.

Background

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 
gas.

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

END


MSCEAFFKEEPAFFF -0- Nov/06/2012 11:09 GMT
 
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