Polish Oil & Gas company said it has requested Gazprom and Gazprom Export to renegotiate the price of gas supplied under the Yamal contract.
The management board of PGNiG decided to call for price renegotiation in connection with material changes observed on the European energy market in the recent years, the company said in a statement.
PGNiG’s request marks the beginning of the formal renegotiation procedure. Pursuant to the Yamal contract of September 25th 1996, if the parties fail to reach an agreement concerning price renegotiation within six months, the company will have the right to initiate arbitration proceedings.
PGNiG said it will use its best efforts to reach a satisfactory agreement through bilateral talks.
The Yamal contract provides for gas supplies until and including 2022, in an annual quantity of up to 10.2 bcm. Gazprom remains PGNiG’s most important gas supplier, and PGNiG is among the largest buyers of gas supplied by Gazprom to the European Union.
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Press Release; Image: PGNiG