On October 28th 2016, the European Commission announced that it would allow Gazprom to use more of the Opal pipeline capacity. As the text of the decision has not been disclosed to the public yet, PGNiG Polish Oil & Gas Company is unable to take any legal steps. This is why today PGNiG has requested the Commission to promptly publish the OPAL decision.

“Increasing Gazprom’s use of the OPAL pipeline capacity from 50% to 80% is extremely disadvantageous to all of Central and Eastern Europe. We are prepared to take any possible legal action against the European Commission and German energy regulator Bundesnetzagentur to have the decision declared as violating EU laws. Therefore we are appealing to the Commission to publish the decision as soon as possible,” said Piotr Woźniak, President of the Management Board of PGNiG SA. “As part of the preparations, we are engaging the recognised law firm Kancelaria Prawna Kochański, Zięba i Partnerzy, supported by Professors Cezary Mik and Marek Szydło. We also mean to take other legally permitted measures to block the actions which we believe jeopardize Europe’s energy security,” Piotr Woźniak added.

The European Commission announced its decision to approve the earlier pronouncement by Bundesnetzagentur on October 28th 2016. However, the announcement was made via a press release only and thus rendered PGNiG unable to take any legal steps in the case. A decision of the European Commission may be challenged in court only after its official publication, within two months from the publication date.

The Polish government, PGNiG as well as many other companies from the CEE region all agree that granting Gazprom more capacity in the OPAL pipeline will further bolster its monopolistic position.

Gazprom is to be given access to 80% of OPAL’s transmission capacity. This means that the Russian company will be able to increase the volumes of gas transmitted to Germany via Nord Stream 1 by over 20 bcm.

OPAL is a transmission pipeline running through Germany along the Polish-German border, with a maximum capacity of approximately 35 bcm. It is an extension of the Nord Stream 1 pipeline. The landfall point is situated in Greifswald by the Baltic Sea and the end point in Brandov on the Czech-German border.

PGNiG Polish Oil & Gas Company will act with equal determination if the Commission decides not to fine Gazprom for breaking antitrust rules on the CEE gas market. Also in this case the Company will engage the services of recognised legal advisers with experience in proceedings before the Court of Justice of the European 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.

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.