PGNiG, VNG Agree on New Pricing Formula (Poland)

VNG – Verbundnetz Gas Aktiengesellschaft and Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) have agreed an amended pricing formula under the existing agreement for gas supplies to Poland until 2016.

The new formula will take effect as of October 1st 2012. The annual supplies of gas to PGNiG will remain unchanged, at 400 million cubic metres.

The agreed gas price is based on a pricing formula which takes into account the current market prices of gas and the prices of petroleum products. The reason for its introduction were the significant changes on the European gas market, which have resulted in an increased role of indexation of the prices of gas supplied to hubs.

The relations between VNG and PGNiG date back to 1992. They led to the execution in 2006 of an agreement providing for the supplies to Poland of 4.2 billion cubic metres of gas. Under the agreement with VNG, PGNiG has secured long-term, reliable supplies of natural gas sourced from west of Poland.

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LNG World News Staff, October 19, 2012