Russ Oil-Gas

May 12, 2009 – Associated Press – WARSAW, Poland — Poland's gas monopoly PGNiG said Tuesday it had reached a deal with Gazprom to receive 1.024 billion cubic meters (1.34 billion cubic yards) of natural gas from the Russian company through the end of September. PGNiG, or Polskie Gornictwo Naftowe i Gazownictwo, estimated the value of the agreement at around $300 million, but said the final value would depend on the world market price of crude oil products. The company said the deal would allow it to replenish strategic reserves that it was forced to tap into this year after a pricing dispute between Russia and Ukraine in which Moscow cut gas deliveries to much of Eastern Europe. Poland continued to have a shortfall in gas deliveries even after Ukraine and Russia resolved their dispute because the Swiss-based energy trader RosUkrEnergo — which is half-owned by Gazprom — did not resume gas deliveries for reasons that remain unclear. PGNiG said its governing board and the Polish Treasury Ministry still have to approve the deal. Also Tuesday, PGNiG reported a 399 million zloty ($125 million) net loss in the first quarter, largely due to the high cost of imported gas. The company also said the Polish zloty's slide against the U.S. dollar kicked up the cost of imported gas and contributed to the losses. PGNiG imports the bulk of the gas it sells in Poland from Russia.