PGNIG, Gazprom Headed Back to Arbitration Court

PGNiG, the Polish oil and gas company, has filed a lawsuit against Gazprom for proceedings before the Arbitration Court in Stockholm.

The move follows failed negotiation over the dispute on contract terms related to the long-term gas supply contract to Poland via the Yamal-Europe pipeline signed in September 1996.

“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.

An earlier another arbitration lawsuit by PGNiG against Gazprom in 2011 that ended in an out-of-court settlement with the Polish company receiving a discount of about 15 percent.