No plan for new gas supply deal with Russia's Gazprom, PGNiG says

PGNiG CEO Paweł Majewski told reporters on Thursday that the Russians are urging Poland to sign a new long-term contract in place of the Yamal agreement. Leszek Szymański/PAP

Poland's main gas retailer, state-owned PGNiG, said on Thursday that it does not aim to sign a long-term contract with Gazprom for gas supplies to the country.

Russia's gas giant has been supplying natural gas to Poland under the Yamal contract signed by the two companies in September 1996 but the deal expires on December 31, 2022, and will not be renewed, Poland has earlier said.

PGNiG CEO Paweł Majewski told reporters on Thursday that the Russians are urging Poland to sign a new long-term contract in place of the Yamal agreement.

"We do not plan to conclude a long-term contract with Gazprom," he said.

According to Majewski, Gazprom said that gas could be cheaper if all European countries signed long-term contracts with the Russian supplier.

"This is false rhetoric that will continue to build Gazprom's dominant position, strengthen it, and thus make Europe dependent on supplies and, consequently, the decisions of one contractor," the PGNiG CEO said.

The Yamal contract has been amended and annexed several times. It provides for the delivery of around 10 billion cubic metres of gas per year. According to the take-or-pay clause imposed by Gazprom, PGNiG must collect at least 8.7 billion cubic metres of contracted gas annually.

On November 15, 2021, PGNiG said it had notified Gazprom that it would not renew the Yamal deal on gas supplies when the agreement expires after 2022.