Page 15 - FSUOGM Week 18 2022

FSUOGM NEWS IN BRIEF FSUOGM

Lithuanian-Polish gas Poland’s PGNIG steps in to there will be appropriate compensation from
“Appropriate legal steps will be taken and
pipeline comes on stream ensure gas supplies after Gazprom for violations of the provisions of the
contract,” Duda said while on a visit to the Czech
Gas Interconnection Poland-Lithuania (GIPL), sanctions hit Novatek Republic.
a gas pipeline connecting Lithuania and Poland, Poland and the European Commission say
was launched on May 1. Vilnius officials say this State-controlled Polish oil and gas company that any changes to the method of payment for
marks a key milestone in the region’s energy PGNIG will ensure gas supplies to several gas constitute a breach of contract.
independence from Russian gas, LRT.lt, the web- municipalities that were cut off gas after Warsaw The Commission also warned companies
site of the Lithuanian national broadcaster LRT, slapped sanctions on Russian-owned supplier mulling to comply and pay for gas through Gaz-
reported on May 2. Novatek, PGNIG said on April 29. prombank’s rouble accounts that doing so would
“Today, it [gas] has been transported towards The sanctions, which went into effect on April mean circumventing EU sanctions on Russia.
Poland, but depending on the needs of mar- 25, suspended businesses of Novatek and a num- Poland says that Gazprom’s halting supplies
ket participants, it will be transported to both ber of other Russian-owned companies operat- will not affect its energy security thanks to the
Lithuania and Poland. This is a milestone in the ing in Poland. high level of storage and imports from directions
history of the development of energy independ- Novatek was a supplier of gas to 10 munici- other than Russia.
ence between Lithuania and Poland, especially in palities across Poland, including the popular sea- Poland operates an LNG terminal in the
the context of security of gas supply,” Nemunas side resort of Leba, which is currently bracing for coastal town of Swinoujscie and has recently
Biknius, CEO of Lithuania’s gas transmission the season’s first pick-up in tourist traffic for the linked its gas grid with Lithuania’s.
system operator Amber Grid, said on May 1. long May weekend. Warsaw is also moving fast towards launch-
Completed in Lithuania earlier this year, the On the order of the Prime Minister Mateusz ing supplies via the Baltic Pipe, a new pipeline
508-km GIPL gas pipeline connected Lithuania, Morawiecki, PGNIG-owned gas distribution linking Norwegian gas fields, operated by the
the other Baltic countries and Finland’s gas mar- companies, PZG and PGNIG Obrot Detaliczny Polish state oil and gas company PGNiG, with
ket with the European Union via Poland. The will work to restore supplies as soon as possible, Poland.
pipeline stretches 165 km in Lithuania and 343 the company said. The Polish government said earlier that it
km in Poland. Poland’s sanctions on Russian business as would end gas imports from Russia by the end
well as on a number of Russian nationals came of the year. Gazprom’s decision has effectively
as Russian gas supplier Gazprom halted gas ship- brought that forward by several months.
Poland restores gas ments to Poland.
Halting supplies was in response to Poland’s
supplies after suspension refusing to pay for gas via a rouble account set Poland and Germany near
up in Gazprombank, handling Gazprom’s due
by Russian company gas payments. Poland says that demanding pay- agreement on co-operation
ment via an extra account is a breach of the sup-
Poland’s state gas giant said on April 30 it was ply contract. to ditch Russian oil
gradually restoring the flow of natural gas to Following Russia’s attack on Ukraine, Poland
municipalities that lost it after Russian company said that it would stop importing Russian gas by Poland and Germany could strike an agree-
Novatek Green Energy halted supplies when the end of the year, which is when the supply deal ment for mutual support in getting rid of Russian
Warsaw slapped it with sanctions over Russia’s with Gazprom expires. Gazprom’s cutting sup- oil imports, German Economy Minister Robert
invasion of Ukraine. plies has effectively ended Poland’s reliance on Habeck said following his visit to Warsaw on
The supply cut was a separate development Russian imports in April. April 26.
from Russia’s decision last week to stop gas deliv- Poland has long said it will not renew the Germany has been resisting a quick, universal
eries to Poland. Gazprom deal as it will be able to meet demand and simultaneous EU-wide oil embargo, while
PGNiG said Novatek Green Energy complied by imports via an LNG terminal, its own produc- Poland has been pushing for one. A deal with
with the demand to make its pipelines available tion, the new gas interconnector with Lithuania, Poland could help allow Germany to agree to EU
to Polish companies that are now starting to con- and the new supply route, the Baltic Pipe. sanctions on Russian oil exports, leaving Hun-
vey their gas to the 10 affected areas. gary isolated as the main opponent of tightening
PGNiG said the handing over of Novatek’s pressure on the Kremlin.
infrastructure and the necessary documents Poland’s Duda says The Commission is currently working on
took place “without problems and in good plans for what it calls “smart sanctions” against
atmosphere”. Gazprom will face legal Russian oil exports, which may involve only
On April 29, Polish government spokesman imposing curbs on oil products rather than
Piotr Mueller warned that Novatek could face action over gas supply halt crude oil. The Commission approved sanctions
legal action under the country’s crisis manage- on Russian coal exports earlier this month.
ment laws if the company didn’t immediately Poland will respond with legal action against Sanctions on gas are a tougher proposition, with
comply. Russian state-owned gas supplier Gazprom for many countries in Central and Eastern Europe
A subsidiary of a group controlled by OAO its halting of shipments to Poland, President almost entirely dependent on Russian imports.
Novatek, Russia’s second-largest natural gas Andrzej Duda said on April 27. Germany is particularly vulnerable on oil as
producer, Novatek was put earlier this week on Gazprom suspended supplies to Poland and last year it imported 35% of its oil from Russia,
Poland’s list of sanctions against 50 Russian and Bulgaria on April 27 after Warsaw and Sofia did though it plans to end imports by the end of the
Belarusian businesses. not meet Russian demands to pay for gas via rou- year and expects to reduce its dependence to
ble accounts in Gazprombank. 25% in the next few months.

Week 18 05•May•2021 www. NEWSBASE .com P15