Poland Seeks Majority of Gas Trading on New Exchange

Poland wants 70% of gas consumed in the country to be sold via the fledgling gas exchange by the middle of next year, a government minister has said.

It is anticipated that this will help reduce prices and open up the market. 

State-controlled gas monopoly PGNiG sells nearly all of the gas available in Poland. Of this around 70% goes to industry and the rest to private customers. Gas prices are capped by market regulator URE.

Deputy Economy Minister Tomasz Tomczykiewicz told a parliamentary committee the government will require PGNiG to trade 30% of its gas on the exchange by the end of the year and 50% by June 2014, media reported.

State-controlled gas monopoly PGNiG sells nearly all of the gas available in Poland. Of this around 70% goes to industry and the rest to private customers. Gas prices are capped by market regulator URE.

Tomczykiewicz said the target date, just 18 months away, could be modified, although the final target will remain in place.

Poland launched the gas exchange last month to pare PGNiG's dominant position in the 14 billion cubic metres (bcm) market, but trade has been very slow.