Poland Gets Tough on Gazprom Pipeline

The Polish government will only accept a state-owned investor to build and operate a second line of the Yamal-Europe natural gas pipeline from Russia to Germany via its territory, the country’s treasury minister has said.

The Wall Street Journal reports that the first line, in operation since 1999, is jointly owned by Poland’s state-controlled gas firm PGNiG SA and Russia’s Gazprom.

President Vladimir Putin this week told Gazprom, the national gas giant, to revive a plan to build the second pipeline for natural gas from the Yamal region to Europe.

“The decision on building a transit gas pipeline will be a sovereign decision made by the Polish government and the Polish pipeline operator,” Poland’s Treasury Minister Mikolaj Budzanowski said. “The legacy of the Yamal pipeline provides evidence that mixed ownership structures for managing transit pipelines are not effective.”

“Based on this experience, I believe the project for the construction of a new pipeline can only be implemented by an investors owned by the Polish state.”

Gazprom recorded a meeting between its chief executive, Alexey Miller, and Poland's Economy Minister, Janusz Piecochinski. In its words, "Miller informed the Polish party on the basic parameters of the gas pipeline, and pointed out that this project would bring along an economic benefit to Poland from gas transit fees and strengthen energy security of consumers in Central Europe."

See earlier story: Gazprom Could Complete Pipeline by 2018