PGNiG SA has requested OAO Gazprom and OOO Gazprom Export to renegotiate the price of gas supplied by Gazprom under the Yamal Contract of September 25th 1996. The Management Board of PGNiG SA decided to call for price renegotiation in connection with material changes observed on the European energy market in the recent years.
PGNiG SA's request marks the beginning of the formal renegotiation procedure. Pursuant to the Yamal Contract, if the parties fail to reach an agreement concerning price renegotiation within six months, the Company will have the right to initiate arbitration proceedings. PGNiG will use its best efforts to reach a satisfactory agreement through bilateral talks.

The Yamal Contract provides for gas supplies until and including 2022, in an annual quantity of up to 10.2 bcm. Gazprom remains PGNiG SA's most important gas supplier, and PGNiG SA is among the largest buyers of gas supplied by Gazprom to the European Union.

About Gazprom

Gazprom is a global energy company. Its major business lines are geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel as well as generation and marketing of heat and electric power.

Gazprom views its mission in reliable, efficient and balanced supply of natural gas, other energy resources and their derivatives to consumers.

Gazprom holds the world’s largest natural gas reserves. The Company’s share in the global and Russian gas reserves makes up 18 and 72 per cent respectively. Gazprom accounts for 14 and 74 per cent of the global and Russian gas output accordingly. At present, the Company actively implements large-scale projects aimed at exploiting gas resources of the Yamal Peninsula, Arctic Shelf, Eastern Siberia and the Far East, as well as hydrocarbons exploration and production projects abroad.

Gazprom is a reliable supplier of gas to Russian and foreign consumers. The Company owns the world’s largest gas transmission network – the Unified Gas Supply System of Russia with the total length of over 168 thousand kilometers. Gazprom sells more than half of overall produced gas to Russian consumers and exports gas to more than 30 countries within and beyond the former Soviet Union.

About PGNIG

The PGNiG Group is the leader of the Polish natural gas market, as well as the only vertically integrated gas company in Poland. Its parent undertaking is Polskie Górnictwo Naftowe i Gazownictwo. Formation of the Group's enabled coordination of the upstream and downstream operations - from exploration and production to storage to trade and distribution of gaseous fuels. The roots of the companies forming PGNiG date back to 19th century - to the beginnings of Polish and world oil industry. The company has been operating under the name PGNiG since 1982. In 1996, the state-owned company PGNiG was transformed into a joint stock company.