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    Russia to cut gas supply to Poland on April 27

Summary

The disruption is unlikely to impact Poland significantly in the short term, although the move prompted a spike in European gas prices.

by: NGW

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Russia to cut gas supply to Poland on April 27

Poland's state gas importer PGNiG announced late on April 26 it had received a letter from Gazprom confirming that Russian gas supply would be halted on the morning of April 27, marking a significant escalation in Europe and Russia's standoff over energy supplies and the war in Ukraine.

"PGNiG received a letter from Gazprom announcing the complete suspension of gas supplies under the Yamal contract," PGNiG said in a statement. "The company monitors the situation and is prepared for various scenarios. Currently, deliveries to recipients are made according to demand."

Poland typically depends on Russian gas to cover about two thirds of demand. But the country has been preparing for a potential cut-off in supply, with its gas storage facilities currently 80% full, in stark contrast to an EU average of under 30%. With the heating season over, this means that the disruption is unlikely to impact domestic supplies in the near term.

However, the move by Gazprom led to a spike in European gas prices, with the front-month contract at the Dutch TTF hub climbing 17% following the announcement.