Financial Times: Polish gas: buy high, sell low

Siberian temperatures that have gripped Poland over the last week has sent natural gas usage soaring as consumers and businesses crank up heating systems to keep warm – but the spike in consumption is not causing much joy at the country’s main gas provider.

That’s because PGNiG, the government controlled gas delivery monopoly, is paying higher prices for the gas it imports from Russia than it is able to charge its customers – pending a request with regulators to increase gas rates.

Today, the gas company cut supplies to big industrial users like refiner PKN Orlen and chemical companies ZCH Police and Pulawy – normal procedures when demand soars.

Russia’s Gazprom on Tuesday reduced exports to western Europe due to the cold snap, reported Reuters.  MORE