Poland Sets Date for Natural Gas Deals on Energy Exchange

Polish authorities have set December 20 as the day the country's energy dealing vehicle, POLPX, will begin operations in the natural gas market.

Reuters reports that the birth of natural gas trading on POLPX will be a significant move towards liberalising eastern Europe's biggest gas market in line with European Union requirements.

Poland, the biggest economy in central and eastern Europe (CEE), is required by the EU to introduce free market rules to its gas sector.

The creation of the new exchange by POLPX, a unit of the Warsaw Stock Exchange, could be a significant move in Europe's energy market.

Poland has vast shale reserves but has recently experienced a bumpy road to harvesting these. Initial enthusiasm has dulled and some problems have arisen, causing players such as Exxon to depart the market.

State-controlled PGNiG currently sells nearly all of the gas available in Poland, of which around 70% goes to industry. 

The government, the regulator and PGNiG have for months debated how to liberalise the market and the idea which has gained most support is to introduce a requirement for PGNiG to trade a certain amount on an exchange, as Poland has already done to liberalise its wholesale power market.

Local utilities have been ordered to sell 15% of their power on the market.