Click on the advert above to visit the company web site

Product category: Oil, Gas, Petrochemical Industry News
News Release from: RCCnews
Edited by the Processingtalk Editorial Team on 15 July 2005

Poland might lose Russian gas transit
fees

Request your FREE weekly copy of the Processingtalk email newsletter. News about Oil, Gas, Petrochemical Industry News and more every issue. Click here for details.

Tension is growing in Poland in connection with Vladimir Putin's announcement of the joint Russian-German Northern gas main project that will cross the Baltic Sea

Poland might lose one billion dollars annually in Russian gas transit fees Tension is growing in Poland in connection with Vladimir Putin's announcement of a joint Russian-German project of the Northern gas main that will cross the Baltic sea to connect the town of Primorsk, Leningrad region, with Greifsvald, Germany

The construction of the gas main will begin in co-operation with French companies this September: the gas-main will become operational in 2010.

Poland, which considered this project as purely conceptual, has got down to calculating its potential future economic loss.

First of all, the plan to build the second line of the Yamal-Europe gas main passing through Poland will be cancelled entailing the loss of investments and jobs.

Secondly, Poland might lose its annual one billion dollars for the transit of Russian gas.

The Polish gas industry officials tried to convince Gazprom that the second line of the Yamal-Europe gas main was economically beneficial.

While the value of the new project is impressive: the first stage of the Northern gas main is estimated to cost close to $5.7 billion, whereas the second line of the Yamal main would be $1 billion odd only.

Poland also sounds an alarm in connection with the tension between Russia and Ukraine caused by gas disputes.

The alarm is related to the Naftogas announcement that it will be forced to limit gas deliveries to its West European customers if Gazprom cuts down the supply.

Ukraine is known to be the main transit route for the Russian gas, therefore the restrictions may affect Slovakia, Czechia, Germany, Austria, Bulgaria, and Romania.

Meanwhile, Poland countered the forthcoming economic troubles with a new political move.

Polish president Alexander Kvasnevsky declared: "Poland will support Estonia in its dispute with Russia on their boundary treaty since the Estonian-Russian border is also the border of Russia with the European Union".

One can hardly expect that following such a strong statement Russia will swing its gas mains around to traversing Poland.

RCCnews: contact details and other news
Email this article to a colleague
Register for the free Processingtalk email newsletter
Processingtalk Home Page

Search the Pro-Talk network of sites