VZCZCXRO3660
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHWR #2418 3241055
ZNR UUUUU ZZH
P 201055Z NOV 06
FM AMEMBASSY WARSAW
TO RUEHC/SECSTATE WASHDC PRIORITY 2463
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHKW/AMCONSUL KRAKOW PRIORITY 1405
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS WARSAW 002418
SIPDIS
SENSITIVE
SIPDIS
STATE FOR S/P, EUR/NCE, EUR/ERA, EB/ESC
S/P FOR GMANUEL AND SHELLMAN
EUR/NCE FOR DKOSTELANCIK AND BPUTNEY
EUR/ERA FOR DLIPPEAT AND LCATIPON
EB/ESC FOR RGARVERICK AND SLEWANDOWSKI
COMMERCE FOR 4232/ITA/MAC/EUR/JBURGESS, JKIMBALL, MWILSON
COMMERCE FOR SFRASER
TREASURY FOR MGAERTNER
E.O. 12958: N/A
TAGS: ENRG EPET ECON PO RS UR
SUBJECT: POLAND FINALIZES GAS DEALS WITH ROSUKRENERGO AND
GAZPROM
1. (U) Polish Oil and Gas Company PGNIG signed a contract
with RosUkrEnergo for gas imports beginning January 1, 2007.
The contract is for 2.5 BCM of gas per year for three years
with the possibility of prolonging the deal for another two.
The price is based on the price of oil derivative products on
the global market. Poland's current contract with
RosUkrEnergo will expire December 31. At current market
prices, the contract is valued at 2 billion zloty ($673
million).
2. (U) At the same time, PGNiG signed an annex to its 1996
Yamal gas contract with Gazprom. Sources indicate that the
revised annex will increase gas prices on average 10 percent.
Other contract conditions remain unchanged. At current
market prices, the contract is valued at 6.7 billion zloty
($2.2 billion).
3. (SBU) Comment: PGNiG's conclusion of a three year
contract with RosUkrEnergo and addendum with Gazprom is good
news for the GOP and Polish consumers. The contracts should
ensure that gas will continue to flow on January 1 as the
company's negotiations will not go down to the wire. The
contracts also give the GOP breathing space as it attempts to
negotiate other deals that will improve Poland's long-term
energy security.
ASHE