VNG, PGNiG Agree New Pricing
PGNiG says that it has lowered the price of gas supplied to it by German company Verbundnetz Gas Aktiengesellschaft (VNG) through the revision of a pricing formula.
The revision agreement covers a contract already in place between the two companies, which will be in effect until 2016, and covers gas supply of 400 million cubic metres to PGNiG a year. The revised pricing will take effect from the 1st of October 2012.
PGNiG says that the contract was renegotiated in light of changes within the European gas market, and the resultant increased role of indexation of the prices of gas supplied to hubs. Current market prices and the prices of petroleum products taken into account during the renegotiation, PGNiG said.
VNG has been supplying PGNiG with gas since 2006, when the companies signed a ten-year contract. Under that contract, VNG will supply PGNiG with 4.2 billion cubic metres of gas over the contract's decade term.