Poland in Shape to Ditch Russian Gas

Polish gas company PGNIG does not expect to use all the capacity it has booked on the new pipeline from Norway when it starts operating according to chief operating officer Robert Perkowski on its results call today.

• The company expects demand to be tempered by the high rise in gas prices.
• At full booked capacity, the gas flows from Norway are capable of fully replacing those from Russia. Poland has been firmly committed to moving away from Russian fossil fuel flows since the invasion of Ukraine.
• Russia stopped sending gas to Poland last month due to a refusal to pay for Russian gas in rubles. Russian gas payment deadlines are upcoming in the weeks ahead which may see further cut offs by Russia across Europe.
• "When we were booking the capacity in 2018, we were assuming gas demand in Europe would be rising, today we can see a weakening in gas consumption," Perkoski said, adding, "Today, I don't see a need to use the maximum of the capacity we booked in the Baltic Pipe,".
• Poland is well ahead of many of its European counterparts, filling gas capacity to 90%, well ahead of winter. Germany by comparison is at around 40%. The EU want all bloc members to be at 80% by November to try and ensure security next winter in case Russia cuts off supplies.
• The EU have struggled to pass an oil ban because of Hungary’s refusal to agree leaving a gas ban some way off.