Poland: PGNiG Introduces New Gas Pricing Policy

Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) introduced a new pricing policy for all natural gas instruments, traded on both the futures market and the day-ahead market, through the Polish Power Exchange.

The purpose of the new pricing policy is to offer natural gas to other market participants, at prices equal to those found on other deregulated wholesale, exchange and OTC markets closest to the Polish market.

In the company’s opinion, the proposed method for setting offer prices on the Polish Power Exchange will be an attractive alternative to tariff prices for other natural gas market participants, and is also more cost effective than making individual purchases of natural gas in markets outside Poland and transporting it back to the Polish natural gas system.

This change in pricing policy is the first step towards implementation of the obligation to sell 55% of all natural gas fed into the domestic transmission system through the Polish Power Exchange, which was imposed on the Company by virtue of the amended Energy Law.

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LNG World News Staff, October 8, 2013; Image: PGNiG