Emfesz fails to break PGNiG's gas monopoly

Zaklady Azotowe Pulawy (ZAP), one of the country's biggest commercial users of gas, has terminated its gas supply contract with Emfesz of Hungary signed in March last year after the Hungarian company failed to secure gas-transmission and storage contracts with Gaz System and PGNiG that are required under Polish law, thus preventing it from supplying Pulawy with the 150 million of cubic meters of gas planned for 2006 under a contract that was to run until 2008. The Pulawy management, appointed by Law and Justice, is now in talks with PGNiG over a new supply deal and is no longer interested in Emfesz's services. Thus Emfesz, which had hoped to be the first company to break PGNiG's monopoly on gas imports after it offered Pulawy lower prices than the listed giant, appears to have become the latest victim of PGNiG's fierce efforts to retain its market position. It has accused Gaz System and PGNiG of colluding to deny it market access by refusing to conclude the transmission and storage contracts and its case is being considered by UOKiK, the anti-trust watchdog. (Puls Biznesu, p. 9) R.M.