PGNiG puts pressure on VNG to grant lower gas prices

Polish Oil and Gas (PGNiG) plans to renegotiate its gas purchasing contract with German VNG. PGNiG will soon face market liberalization, which could result in it losing up to a third of the gas market. PGNiG will soon begin to renegotiate its contract with VNG for deliveries of 400 million cubic meters to Poland until the end of 2006. The Germans want to increase this amount to 1 billion cubic meters but, "We cannot accept the price offer of VNG. If it is not lowered than we might give up on them and quit capital cooperation in Nysagaz, in which PGNiG holds 51% stake," stressed Marek Kossowski, president of PGNiG. He added that the price should be either the same, or even lower than Norwegian gas. (Puls Biznesu, pp. 1, 4) M.M.