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.

 

The European Commission still has not disclosed the contents of its decision. According to PGNiG, concealing significant information should be perceived as an attempt to make it more difficult for Central European entities to exercise their rights.
 

"Neither our EU nor German partners are playing fair. Bundesnetzagentur seems to be abusing its powers. Commission decision and Bundesnetzagentur settlement were supposed to bring effects in 2017. Meanwhile, the operator of the OPAL gas pipeline – OPAL Gastransport GmbH – announced on December 15, 2016, right after PGNiG brought the German NRA into court, that it would introduce new tariffs and rules for using the pipeline starting from today, December 19, 2016. Such action from the German side – and let me remind you that Gazprom is the co-owner of the OPAL gas pipeline – is a clear breach of the EU law and a tangible threat to the stability of gas supply to Poland and Central Europe" – said Piotr Woźniak, CEO of PGNiG SA.

SUMMARY OF EVENTS:

• On December 4, 2016, a subsidiary of PGNiG SA – PGNiG Supply & Trading GmbH brought the decision of the European Commission on OPAL to the Court of Justice of the European Union.
• On December 15, 2016, PGNiG SA and PGNiG Supply & Trading GmbH brought legal action with respect to the agreement between Bundesnetzagentur, OPAL Gastransport GmbH & Co. KG, PJSC Gazprom, and Gazprom export LLC before a Düsseldorf court.
• On December 16, 2016, the government of the Republic of Poland referred the decision of the European Commission on OPAL to the Court of Justice of the European Union.