Rzeczpospolita reports that if PGNiG fails to sign a new gas purchase deal with Russia soon, Poland may face difficulties gas supplies in the winter. Imports from Russia and Germany plus domestic production might not be enough, the press speculates. Representatives of PGNiG have said that they are working on a new contract with Russia's Gazprom, regarding additional 2 billion cubic meters per annum.
According to Rzeczpospolita, the talks with Gazprom are difficult. Last autumn the company proposed talks regarding an increase in prices but PGNiG and the Polish government was unwilling for such a move. Now Gazprom wants to change the status of EuRoPol Gaz, and the right of veto for the CEO.
Our view: We are not surprised on Gazprom’s claims. The Russian company is in a good position at talks, because Poland doesn’t really have other option to purchase such a big amount of gas. The news highlights the importance of PGNiG’s 48% stake in EuRoPol Gaz, but on the other hand lower sales volumes could have negative impact on PGNiG’s earnings. Major industrial consumers of natural gas, such as PKN Orlen, could also be affected negatively by lack of supply. Although it is too early to assess the potential earnings impacts, supply risk is definitely increasing.