The governments of Poland and Russia have finalized negotiations on an agreement under which Russia's OAO Gazprom (GAZP.RS) will supply additional amounts of natural gas to Poland as of next year, the Polish Economy Ministry said in a statement Thursday.
The governments of Poland and Russia have finalized negotiations on an
agreement under which Russia's OAO Gazprom (GAZP.RS) will supply additional
amounts of natural gas to Poland as of next year, the Polish Economy Ministry
said in a statement Thursday.
The agreement between the governments seals an earlier deal between Gazprom and
Polish gas monopoly PGNiG SA (PGN.WA).
The ministry said that on Thursday negotiators ironed out the outstanding
technical and legal details of the agreement, without elaborating.
Both parties had earlier agreed on the timeline of the new deal, gas prices,
volumes and rules for gas transit through Poland, as well as on the squeeze-out
of a third shareholder in the PGNiG-Gazprom Polish pipeline joint venture
EuRoPol Gaz. The agreement also includes the extension of an existing gas
supply contract until 2037.
Under the deal, PGNiG will increase gas purchases from
Russia
to
10.27 billion cubic meters a year, up from 7 billion cubic meters purchased in
2008.
Poland
currently consumes some 14 bcm of gas annually and projects that its demand
will increase to some 18 bcm by 2015, driven chiefly by increased use of gas
for electricity
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