Poland shows energy security as Russia cuts gas supply

  • 27 Apr 2022
  • Kieran

Following the news that Russia has suspended natural gas supplies to Poland and Bulgaria, Poland’s Minister of Climate and Environment, Anna Moskwa, has stated that the country has the necessary gas reserves and supply sources to protect its energy security[1].

Russian gas organization Gazprom’s deliveries through the Yamal-Europe pipeline have now reportedly stopped, with gas supplies to Bulgaria expected to stop from Wednesday[2]. The suspension has come as the two countries refused to pay for the gas in roubles, as demanded by the organization.

In a press conference, Moskwa highlighted that infrastructure investments in the Baltic Pipe and connections with other EU member states means that the country can abandon Russian gas supplies. Further energy security comes from an increased rate of LNG imports into the country, with the alternative source representing 20% per cent of natural gas imports last year.

As of 27 April, PGNiG, one of the largest organizations in Poland and a state-owned gas company, confirmed the complete suspension of gas supply from Gazprom. In a statement, the business said, in its opinion, the limitation of natural gas supplies is a breach of contract. However, the organization also explained that its customers will continue to receive gas in accordance with their demand.

It continued by recognizing the importance of the strategy to diversify the sources and direction of gas supplies into the country, confirming that it has ‘various possibilities’ of obtaining it. The possibilities detailed by the company include buying gas from EU member countries, through connections with Germany and the Czech Republic, and also accessing the LNG market through the country’s terminal in Świnoujście. Finally, it recognized the additional security of having gas storage facilities, which are currently at around 80% capacity.

Indeed, these alternative gas sources show the importance of not relying on a single supplier and always having alternative sources of key products on standby. However, as Russian gas sources make up for more than half of Polish imports[3], it is still reasonable to expect a shock to the system as the country adjusts over the coming months.

 

[1] https://www.gov.pl/web/klimat/minister-anna-moskwa-nie-zabraknie-gazu-w-polskich-domach

[2] https://news.sky.com/story/russia-to-suspend-natural-gas-supplies-to-poland-and-bulgaria-over-roubles-12599659

[3] https://www.bbc.co.uk/news/business-61237519

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Kieran Matthews

Content Creator, The BCI