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In the course of the second and third quarters of the 12 months, Poland has been constantly importing over 900 million cubic meters of Russian pure fuel monthly. This quantity corresponds to the utmost degree of provides underneath the contract with Russian fuel monopoly Gazprom. On the similar time, the Polish authorities have earned the status of one of the crucial constant and harsh critics of Russian tasks within the vitality business.
How Poland volunteered to purchase fuel at larger value
“In January-August 2021, Gazprom elevated fuel provides to Poland by 12 p.c,” Interfax quotes Gazprom’s message on manufacturing and provides summarising eight months of the present 12 months.
Curiously, Poland’s state-owned fuel firm PGNiG received an arbitration towards Gazprom final 12 months and succeeded within the endeavour to revise the value system. In response to representatives of the Polish firm, the courtroom made it attainable to determine a direct hyperlink between the value system and fuel costs in European markets, which might result in a big enchancment within the circumstances of economic exercise.
Gasoline costs have been very low final 12 months. For instance:
- in Might 2020, the value of fuel at TTF hub collapsed practically twice compared with late March of the identical 12 months – from $80 to $46-47 per 1,000 cubic meters;
- pure fuel then price about $62 per thousand cubic meters at Baumgerten hub.
This value degree didn’t cowl Gazprom’s transportation and tax prices, not to mention any revenue.
And, after all, towards such a background, the victory of PGNiG appeared extraordinarily profitable. Nevertheless, fuel costs in Europe have climbed over $600 per thousand cubic meters of fuel. The typical price of a day-ahead contract on the TTF hub within the Netherlands for August amounted to $533.
If the Poles had not disputed the value and provide phrases, the value would have been decrease than 260 {dollars} per thousand cubic meters for them. But, Poland is raring to purchase pure fuel on the costs of European markets, and it’s up for the Poles to determine that, after all.
Poland unwilling to signal contract with Gazprom
Poland additionally eyes liquefied pure fuel (LNG), despite the fact that all of its free volumes have been going to Asia for a number of months now, the place the value of fuel is far larger than in Europe. For some unusual motive, america promote fuel to Asian patrons, and exhibits no want to provide “molecules of freedom” (as former Secretary of State Mike Pompeo mentioned) to Poland.
In August 2021, Poland diminished the consumption of liquefied pure fuel by 29 p.c vs. August 2020. Nevertheless, common LNG imports for 2021 are nonetheless displaying a rise of 5 p.c to the extent of 2020.
Till 2022, the so-called Yamal contract stays in power letting Poland obtain as much as ten billion cubic meters of fuel from Russia yearly. In Poland, they refuse to resume the contract, hoping to compensate for the drop in fuel provides by way of LNG provides and Norwegian shelf manufacturing.
As soon as once more, freedom is for the free: if the Poles consider that it’s worthwhile for them to pay twice for fuel, then who can stop this?
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