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02.09.2010 Press Release by PGNiG SA Concerning Natural Gas Supplies to Hrubieszów

Polskie Górnictwo Naftowe i Gazownictwo SA reports that on September 1st 2010 Ukrainian company NAK Naftogaz Ukrainy discontinued the supply of natural gas to Hrubieszów.  

Despite the discontinuation of gas supplies from the Ukrainian direction, all the gas buyers in Hrubieszów have been receiving gas from reserves which were built up earlier. Concurrently, arrangements are under way to ensure that gas supply is available from the national transmission system if the need arises.

As the gas supplied to Hrubieszów accounted for about 0.6 per mille of Poland's total gas consumption, this situation has no consequences for the functioning of the Polish economy.

Poland has so far collected through Hrubieszów 9 million cubic meters of gas per year.

Reasons quoted for the discontinuation of supplies include changes to Ukraine's internal regulations, pursuant to which all the natural gas coming from Ukraine's domestic production should be used exclusively to meet Ukraine's own needs, which according to our Ukrainian partners prevents them from supplying gas to Poland.

PGNiG SA does not agree with the Ukrainian partners' argumentation concerning the basis for the discontinuation of supplies and will demand continued performance of the agreement, which remains binding until the end of December 2020. Negotiations on this matter are currently under way. PGNiG SA is hoping for their positive conclusion.

Concurrently, preparations are under way to provide for drawing of gas for Hrubieszów from the national gas transmission system, so as to ensure supply of 100% of gas to all the gas buyers in the area.

Joanna Zakrzewska

Spokesperson for PGNiG SA

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