Gazprom Seeks Higher Gas Price from Poland
Russia's Gazprom has requested an increase in the price it charges Poland's PGNiG for its gas, the latter said on November 9, according to Russia's Interfax news agency.
The pair's long-term contract allows either party to request a revision in price terms every three years if they are not in line with market conditions. PGNiG requested a price renegotiation earlier this month.
PGNiG and Gazprom's so-called Yamal contract came into force in 1996 and covers 10bn m3/year of gas. The take-or-pay clause in the contract requires PGNiG to pay for at least 8.7bn m3 of gas annually. The contract is due to expire at the end of 2022 and PGNiG has insisted it will not renew it, replacing Russian volumes with LNG and piped gas from Norway.
The pair have locked horns over prices just months after Gazprom agreed to pay PGNiG $1.5bn for previously overpricing supplies, following a ruling by a Swedish arbitration court.