PGNiG applies to Gazprom to reduce the price under the Yamal contract

On October 28, 2021, PGNiG submitted a letter to PAO Gazprom and OOO Gazprom Export to amend the PGNiG application in November 2020 to change the price of gas supplied under the Natural Gas Purchase and Sale Agreement of the Republic of Poland on September 25, 1996 (the so-called Yamal Contract) towards lowering it so that the market position can be taken Current account in the renegotiation process.

– We have recently noticed unprecedented increases in natural gas prices in the European wholesale market. This exceptional situation is the basis for the renegotiation of the price terms under which we purchase fuel under the Yamal contract. Bowie Majowski, Chairman of the Board of Directors of PGNiG SA, confirmed that, in our opinion, there is scope to reduce the price of gas supplied to us.

Paweł Majewski added that PGNiG reserves the right to treat the above-mentioned letters as a separate request to renegotiate the contract price. These actions may change the price of gas acquired by PGNiG from Gazprom as of November 1, 2021.

The long-term contract between PGNiG and Gazprom provides for a supply of about 10 billion cubic meters. gas per year. According to the so-called under the receipt or payment clause, PGNiG is required to acquire at least 8.7 billion cubic meters. Contracted fuel per year. Yamal’s contract is valid until 2022.