POLISH GOVERNMENT SUPPORTS PGNiG'S ATTEMPTS TO CHALLENGE COMMISSION DECISION ON OPAL GAS PIPELINE

PGNiG BRINGS LEGAL ACTION BEFORE THE GERMAN COURT WITH RESPECT TO AN AGREEMENT BETWEEN GERMAN NATIONAL REGULATORY AUTHORITY (BUNDESNETZAGENTUR) AND GAZPROM

Due to unprecedented steps on the part of the German National Regulatory Authority (NRA) Bundesnetzagentur and the operator of the OPAL gas pipeline, on December 15, 2016 PGNiG Polish Oil and Gas Company (PGNiG SA) has brought legal action before a German court with respect to the agreement between Bundesnetzagentur, Gazprom, Gazprom Export, and OPAL Gastransport GmbH on the exemption of Gazprom from the principle of third party access to the capacity of the OPAL gas pipeline. On December 16, 2016, the Polish government has also brought European Commission's decision with respect to the OPAL gas pipeline to the Court of Justice of the European Union. Piotr Woźniak, CEO of PGNiG SA, emphasized that the Polish government and PGNiG SA consider the actions undertaken by the Commission, the German NRA and Gazprom with respect to the OPAL gas pipeline as the real threat to the energy security and stability of gas supply to Poland and the European Union.

In the opinion of PGNiG SA, both the decisions by the European Commission and by the German energy regulator Bundesnetzagentur to make capacity of the OPAL gas pipeline available to Gazprom and the European Commission’s decision regarding the abuse of monopolistic position by Gazprom constitute a breach of the provisions of the Treaty on the Functioning of the European Union and Directive 2009/73/WE concerning common rules for the internal market. These decisions pose a real threat to the stability of gas supplies to Central and Eastern Europe.

PGNiG SA is ready to sue both – the decision of the European Commission and the decision of Bundesnetzagentur. PGNiG Supply and Trading GmbH, a PGNiG subsidiary operating in the German market, may be involved in the planned action.