Polish-Russian Gas Treaty Receives EU Blessing

Polish-Russian Gas Treaty Receives EU Blessing
EurActiv
Παρ, 5 Νοεμβρίου 2010 - 13:59
Poland and Russia are due to sign an agreement in Brussels today (4 November) that will see Gazprom increase its deliveries to Warsaw by 38%. Energy Commissioner Günther Oettinger said the treaty would have "EU legitimacy".
Poland and Russia are due to sign an agreement in Brussels today (4 November) that will see Gazprom increase its deliveries to Warsaw by 38%. Energy Commissioner Günther Oettinger said the treaty would have "EU legitimacy".

Oettinger announced that he was going tolook today "at the latest draft of the treaty on a confidential basis" but expressed confidence that the agreement would comply with EU legislation.

Under the deal, Gazprom will supply Polish gas company PGNiG with up to 10.2 billion cubic metres (bcm) a year, according to media reports in the two countries. The volume under the previous contact was 7.45 bcm.

Polish Deputy Prime Minister Waldemar Pawlak said the transit of Russian gas through Poland was guaranteed until 2019, according to the Moscow Times, but the two sides reached agreement on the possibility of prolonging the agreement until 2045.

A key part of the agreement lifts a clause that currently prevents Poland from re-exporting natural gas surpluses to other countries without Gazprom's consent (the so-called 'non re-export clause'), according to a statement by PGNiG.

This clause had caused a substantial delay in finalising the agreement, with the European Commission warning that it was against EU rules and that Poland risked gas shortages (see 'Background').

Poland will also benefit from a price discount if it buys more gas than agreed. PGNiG said this might save it as much as $250 million by the end of 2014 if it uses the full discount offered by Gazprom.

Oettinger, who has just returned from a visit to Russia, said the Commission had provided advice to the Polish and Russian authorities, as well as to energy companies on both sides.

As a result, the bilateral treaty will enjoy full EU legitimacy, he stated.

The gas deal was negotiated between Warsaw and Moscow in parallel with discussions over Poland's possible participation in the construction of a nuclear power plant in Kaliningrad, a Russian enclave between Poland and Lithuania. Warsaw would also reportedly buy electricity from the plant.

Critics say that Poland's energy agreements with Russia run counter to the country's declared policy of seeking to rely less on Moscow for its energy needs. In particular, Warsaw is suspected of losing its appetite for developing shale gas in partnership with US giants such as ExxonMobil, Chevron and Marathon Oil.

Critics also point out that although a clause forbidding Poland to resell excess gas to third countries was removed, there would be no gas available for sale most of the time.


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