Poland's government late Wednesday cleared a January deal between local gas monopoly PGNiG (PGN.WA) and the Russian gas firm OAO Gazprom (GAZP.RS) to boost natural gas deliveries to Poland.
Under what is known as the Yamal deal, Gazprom agreed to boost gas supplies to Poland to the maximum of 10.2 billion cubic meters a year, measured in accordance with Polish norms, and 11 billion cubic meters, measured according to Russian norms.
The agreement between the two companies clears the way for Polish ratification of amendments to the deal.
In a separate statement Thursday, PGNiG said its management and supervisory boards cleared Wednesday the package of agreements with Gazprom.
Signed in 1996, the Yamal contract was extended to 2037 from 2022 agreed earlier. The parties also agreed to extend an earlier agreement for gas transit using the Yamal-Europe pipeline to Germany until 2045.
The two governments signed the amendments last year, but Poland hasn't ratified them yet, waiting for the corporate agreement.
The agreement also settles the dispute over overdue transit fees that Gazprom owed to the local company operating the Polish strand of the Yamal pipeline. The Russian firm and PGNiG jointly own the pipeline operator.
Instead of paying the arrears directly to the operator, Gazprom offered a discount for gas PGNiG buys from the Russian firm.