Will Poland Face Gas Shortage?

Both Poland and Russia are waiting on the European Commission to approve a new contract between Poland’s largest gas company, Polskie Gornictwo Naftowe i Gazownictwo SA (PGNiG), and Russia’s gas monopoly Gazprom. Without a new deal, Poland may face shortages beginning at the end of October.

While the two parties have passed preliminary negotiations, it is now up to the Commission to decide if the deal is compliant with existing EU laws.

To compensate, the Warsaw-based gas company has been in talks with both Germany and Ukraine to provide at least part of the 1.5 billion estimated cubic metres of gas the country will require through the end of the year. Poles are estimated to consume over 14 billion cubic metres of gas in 2010.

Meanwhile, Russian Prime Minister Vladimir Putin has assured that the Nord Stream pipeline, which goes through the Baltic Sea from Russia to Germany, bypassing Poland, will be built despite objections from the latter. Construction has already begun on the pipeline.