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    PGNiG, Aker BP Extend Trade Arrangements


The state monopoly is carving out a regional role in central Europe.

by: William Powell

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PGNiG, Aker BP Extend Trade Arrangements

Polish state PGNiG Supply & Trading (PST) said October 16 that it has signed a contract with Aker BP for the sale and purchase of natural gas produced on the Norwegian Continental Shelf. The two are partners in the Skarv field and satellites, among others, whose gas is delivered to Germany.

No volumes or other commercial information were given but flows started in October. In keeping with EU regulations the gas is not tied to the Polish market and PGNiG said future deliveries may be made through the planned Baltic pipeline which runs to Poland from Norway and crosses Denmark.

“We are pleased that we can co-operate with Aker BP which is a trustworthy and highly valued producer and partner. Aker BP and PST have managed to reach an agreement that provides a solid basis for further strengthening of relations between both companies,” said PGNiG CEO Jerzy Kwiecinski. The aim of PST is to significantly expand its business activities in Norway over the coming years. This contract forms another cornerstone in successfully building a substantial portfolio in the region, PGNiG said.

PST is also actively pursuing expansion in the central and eastern Europe wholesale gas markets and is now trading in the Czech and Slovak markets and is about to enter Hungary. PST has also completed numerous spot and midterm transactions, sourcing gas worldwide and thus established a strong presence for PGNiG on the global LNG market.

European energy traders as well as the European Commission have complained repeatedly in recent years to Warsaw about the dominance of the Polish state in the Polish market and the barriers to competition. PGNiG is to be merged with state refiner PKN Orlen and other entities to create a gas, oil and power behemoth.