Polskie Górnictwo Naftowe i Gazownictwo has called Gazprom and Gazprom Export to arbitration proceedings before the Arbitration Court in Stockholm.
The dispute relates to the change of the price terms of the long-term gas supply contract of September 25th 1996.
Calling Gazprom to arbitration opens the arbitration procedure provided for under the contract. The value of the claim or the date of resolution cannot be specified at this stage of the dispute, PGNiG said in a statement.
“As the talks carried out in the six-month negotiation period provided for in the contract with Gazprom failed to reach a fully satisfactory conclusion, the Management Board of PGNiG has resolved to submit the dispute to the Arbitration Court. Arbitration proceedings are one of the procedures provided for under the contract. Submitting the dispute for resolution by the Arbitration Court does not preclude further negotiations with the trading partner. PGNiG is open to the idea of a settlement which would ensure a favourable gas price, grounded in market reality, for the Company and its customers,” said Mariusz Zawisza, President of the Management Board of PGNiG S.A.
The company became entitled to initiate arbitration proceedings in early May 2015 following the expiry of six months from the date of the request to renegotiate the contract’s price terms.
Submitting the dispute for resolution by the Arbitration Court does not preclude trade negotiations and an amicable settlement with the supplier. The steps taken by PGNiG aim to bring the contract in line with the current conditions on the European natural gas market.