Poland is preparing to pull out of gas supply agreement with Norway

Polish government representatives have confirmed that it is almost certain that the agreement for the annual supply of five billion cubic meters of gas from Norway will not be signed. There appear to be two main reasons for pulling out of the deal; the Norwegian requirement for payment guarantees, and the price that is being asked, which is 25% to 30% higher than that for gas from Russia. This would represent an additional cost to Poland of between $150 million and $180 million annually, making it very difficult to find in the Polish government and Sejm enough supporters for the guarantees to be granted. The negotiations between Poland and Norway have been going on for ten years, and if the agreement had been concluded, from 2006-2007 onwards Norwegian gas would be delivered through an undersea pipeline to the Niechorz area. (Rzeczpospolita, p. B1) M. S.-C.