Report: PGNiG wants Gazprom to cut gas prices more than in ‘12

MOSCOW, Sep 9 (PRIME) -- Polskie Gornictwo Naftowe i Gazownictwo SA (PGNiG), Poland’s dominant gas company, will seek steeper gas cuts than agreed two years ago when it talks with Russia’s Gazprom on the price cut in November, Bloomberg reported Wednesday, citing CEO Mariusz Zawisza.

“Our aspirations are higher because the price differential between Poland and other European countries is significant,” Zawisza said.

PGNiG, as the former Polish gas monopoly is known, agreed with Gazprom in 2012 to cut the price of the fuel in its long-term supply contract by about 15%, which allowed the Polish company to save about U.S. $940 million a year, Treasury Minister Mikolaj Budzanowski said after the deal was signed.

PGNiG buys about two-thirds of its gas, or 10 billion cubic meters, from Russia.

The November talks come after a steady worsening of the crisis in east Ukraine. The E.U. and U.S. have threatened additional sanctions against Russia, while the latter warned Europe it risks having natural-gas supplies siphoned off by Ukraine this winter if a payment dispute is not resolved.

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