PGNiG takes control of strategic pipeline

Gas Asset Management, a subsidiary of the Polish state-controlled natural gas producer and distributor PGNiG, recently bought a 36.17 percent stake in Gas-Trading from Polish company Bartimpex giving it 79.58 percent.

This in turn gives PGNiG 52 percent of voting rights on the EuRoPolGaz shareholders' committee, with Russian energy concern Gazprom having the other 48 percent.

PGNiG has been embroiled in a long struggle to gain control over the company, which is of strategic importance in the context of ongoing energy disputes between the EU and Russia.

The acquisition has been approved by the Office of Competition and Consumer Protection (UOKiK).

The main source of revenue for EuRoPol Gaz is receipts from gas transmission charges through the Yamal pipeline, which links Russian production and Western European markets. Under a take-or-pay contract with Gazprom PGNiG receives up to 11 billion cubic metres a year of gas via Yamal.

Yamal passes through four countries, Russia, Belarus, Poland and Germany.

The EU treats the pipeline as a priority Trans-European Networks (TEN) investment project. Construction began in 1994 and it has a capacity of 32.9 billion cubic metres per year. (jh)