Ukraine Halts Gas Transit from Germany to Poland

Dziennik Gazeta Prawna reports that Polish gas giant PGNiG will not be receive contracted gas supplies from E.ON Ruhrgas this year, as the German company failed to convince Ukraine to allow for gas transit to Poland via Ukraine.

The current contract has expired but PGNiG wants to sign a new one for supplies in Q1 2011, which would be useful if winter in Poland turned out to be particularly severe, the daily writes, citing PGNiG CEO Michal Szubski.

E.ON Ruhrgas had planed to divert some of its Russian gas destined for its Hungarian subsidiary to the Poland.  However Ukraine will not provide the required license to reroute and transit gas through Ukraine to the Drozdowice border point with Poland.

Analysts are convinced PGNiG and E.ON Ruhrgas will face exactly the same problem in 2011.

Source: Warsaw Voice