OREANDA-NEWS. January 29, 2010. The Gazprom Headquarters hosted the Russian-Polish negotiations involving Alexander Medvedev, Deputy Chairman of the Company’s Management Committee, Michal Szubski, President of the PGNiG Management Board, as well as Members of the EuRoPol GAZ Management Board from Russia and Poland.

The negotiations resulted in signing a trilateral Agreement assuring the long-term and mutually beneficial cooperation in the gas sector.

The document stipulates extending the contract for natural gas supply from the Russian Federation to Poland until 2037 as well as potentially increasing natural gas supplies to Poland starting 2010 up to 11 billion cubic meters per year depending on the Polish market demand. With due regard to these provisions, the parties undertook to introduce the relevant amendments into the existing contract.

In addition, the Agreement contemplates extending the contract for natural gas transmission to Western Europe via the Polish section of the Yamal – Europe gas pipeline until 2045.

The signed documents resolve the issues related to EuRoPol GAZ management and its tariff policy for Russian gas transmission through Poland during 2006–2009.

The parties stated that the accords created a favorable environment for introducing the necessary amendments into the Intergovernmental Agreement of 1993, which was being discussed by the governments of the two countries.

“The Agreement confirms the reliability and constructiveness of the partnership ties between our countries,” stated Alexander Medvedev. “It paves the way towards closer cooperation.”

“The Agreements inked directly with the gas producer make it possible to stabilize Poland’s gas balance,” said Michal Szubski. “The accords reached put an end to the 10-year period of disagreements and open up prospects for favorable cooperation.”

Background

Poland’s annual natural gas consumption is about 13.7 billion cubic meters with around 30 per cent produced domestically.

In 2009 Gazprom supplied Poland with 9 billion cubic meters of Russian gas.

PGNiG is Poland’s largest petroleum company dealing with oil and gas field development, energy production, storage and transportation, oil and gas transmission network construction and expansion, as well as natural gas exports and imports.

Joint-Stock Company EuRoPol GAZ Transit Gas Pipeline System was founded in September 1993. The company was created within the Intergovernmental Agreement on the construction of a gas pipeline system for the Russian gas transit through Poland and Russian gas deliveries to Poland, dated August 25, 1993. Among the basic activity fields of EuRoPol GAZ are engineering, construction and operation of the Polish section of the Yamal – Europe gas pipeline.

EuRoPol GAZ owns the 684-kilometer-long Polish section of the Yamal – Europe gas pipeline and five compressor stations. The annual throughput capacity of the pipeline is close to 30 billion cubic meters, provided that five compressor stations are operated simultaneously.

Gazprom and PGNiG are the key shareholders of EuRoPol GAZ.