Lower demand estimates to be basis for renegotiating Russian gas supply deal

Poland has cut its medium- and long-term natural gas demand forecasts ahead of talks with Russia's Gazprom, which Warsaw hopes will pave the way for a compromise over future Russian gas deliveries. Deputy Economy Minister Marek Kossowski said the revised forecast saw Poland's demand for natural gas at 13.7 billion to 16.2 billion cubic meters in 2005, against a previous estimate of 15.7 billion to 17.9 billion. The revision comes at a time when the government is seeking to renegotiate the terms of a 1996 long-term gas supply contract with Russia, under which Poland will start receiving 12.5 billion cubic meters of gas a year after 2010. "The new demand forecast takes into account lower economic growth forecasts, and will be the basis for talks with any future suppliers, including Gazprom," Kossowski told Reuters. "During this week's visit to Moscow we will talk about future gas volumes, but also the timing of the deliveries and Russian investment in Polish-based pipelines," he said, adding that gas demand would stand at 14.9 billion to 19.8 billion cubic meters in 2010, rather than the 18.4 billion to 22 billion cubic meters forecast by the previous government. Kossowski and PGNiG officials are due to hold talks on the 1996 deal with Gazprom in Moscow tomorrow and on Thursday. (Reuters)