Talks to be Held - Prospect of Gas Shortage Increases
Representative of Poland and Russia, together with the European Union, are to meet in Moscow on Saturday in hopes of finally concluding a new gas agreement between the countries.
On Tuesday, Polish Prime Minister Donald Tusk said that the EU has retracted objections to the Russia-Poland gas deal, subject to amendments agreed to between Polish Economy Minister Waldemar Pawlak and European Energy Commission Gunther Oettinger in a Brussels meeting held on September 6th.
The signing of an agreement on long-term gas supply arrangement between Poland and Russia has been delayed by European Commission objections.
The European Commission expressed concerns about the operator of the Yamal pipeline that supplies gas to Europe. Under EU requirements, an independent operator must supervise gas deliveries on the Polish territory so that all market dealers have an equal access to the infrastructure.
The Commission demanded a more precise and transparent description of functions and relations between the gas pipeline owner and the operator EuRoPolGAZ, which is owned by Gazprom and PGNiG, and is the operator of the Yamal-Europe gas pipeline. As part of the conforming to EU requirements, EuRoPolGAZ applied for transferring control over the Polish segment of the pipeline to Gaz System S.A, a designated natural gas transmission system operator in Poland last Friday.
The discussions are taking place with the backdrop of Poland facing a serious threat of gas shortages this winter.
E.ON Ruhrgas had agreed to supply Poland with natural gas, should its on-going discussions with Russia not satisfactorily conclude prior to any risk to Polish consumers. However there are appear to roadblocks to Poland receiving this back up supply.
E.ON Ruhrgas had planed to divert some of its Russian gas destined for its Hungarian subsidiary to the Poland. However, it must first secure a license from Ukraine, to be able to reroute and transit the gas through Ukraine to the Drozdowice border point with Poland.
PGNIG, the Polish gas monopoly, has accused the Ukrainian authorities of blocking the delivery of contracted gas. PGNIG came to an arrangement for gas supply with E.ON Ruhrgas in October 2009 but has since not been able to get the contracted fuel because of lack of consent of the Ukrainian authorities for its transit through Ukraine.
Russian newspaper Kommersant cited sources in the Ukrainian energy ministry saying E.ON Ruhrgas would be denied the needed license as Gazprom - another potential gas supplier to Poland - has until now objected to the deal.
Ukraine and Russia are presently in their own set of discussions about gas supply.
Clearly, Russia is in the drivers seat in its discussion with Poland. What awaits to be seen is the price Poland will have to pay to ensure a 'warm' winter.