PGNiG turns to a new supplier for its Ukrainian gas

Polish Oil and Gas (PGNiG) has decided to cancel the contract under which Polish intermediary Elcom was supplying it with Ukrainian gas. Instead, PGNiG has chosen a company linked to Russian giant Gasprom. PGNiG had contracted with Elcom for the supply of 897 million cubic meters of Ukrainian gas this year. According to information obtained by Rzeczpospolita, PGNiG was planning to save $12.2 million between February and May under a system of spot supply, which worked out much cheaper than signing long-term contracts. However, after Elcom delivered 524 cubic meters of gas PGNiG stopped paying the bills and Elcom halted supplies. PGNiG's new supplier is Sinclair Technologies, which has links to Gasprom. According to PGNiG chairman Andrzej Lipko, Sinclair's prices are comparable to those of Elcom. Lipko explained that PGNiG had been unable to pay its Polish supplier after its bank account had been frozen. (Rzeczpospolita, p. B2) P.W.