PGNiG may agree Norway gas deal despite opposition

Natural gas monopoly PGNiG could decide next week to sign a long-term import deal with Norway that would significantly reduce Poland's energy dependence on Russia. The contract, estimated to be worth around $11 billion over 16 years, is for the supply of five billion cubic meters of gas annually from 2008. "A decision to accept the conditions of the agreement will be discussed during the next meeting of PGNiG's management board on August 27," PGNiG said in a statement yesterday. However, the agreement faces opposition on two fronts. The Democratic Left Alliance (SLD), the party widely expected to win parliamentary elections next month, claims that the deal with Norway, and a similar agreement with Denmark signed last month, are based on unrealistic gas demand forecasts, and that Russian gas is much cheaper than North Sea supplies. Meanwhile the European Union (EU) has accused Norway's gas sales monopoly GFU, which is negotiating the deal with Poland, of anti-competitive behavior and has hinted that it might try to block the deal. The GFU and Polish authorities are now in the final stages of talks, which if not completed by early next month could face annulment by the SLD. (Reuters)