PGNiG Cuts Gas Supply To Poland's PKN Orlen

Polish natural gas monopoly PGNiG (PGN.WA) reduced the gas supply to the country's largest oil refiner PKN Orlen, a person familiar with the matter said Wednesday. The person added that PKN Orlen's main industrial complex in Plock is receiving less gas. Earlier Wednesday, fertilizer maker Zaklady Chemiczne Police (PCE.WA) said PGNiG cut gas supplies to the company by 15% in line with the contract, which allows it to trim deliveries in critical situations.

PGNiG last year failed to finalize gas talks with Russia's OAO Gazprom on an increase in deliveries to Poland. The company continues to receive gas supplies from Russia, but its gas balance has been under pressure for a year after a Russian-Ukrainian gas dispute eliminated a trader that supplied 2.3 billion cubic meters of gas a year to Poland.

PGNiG said Monday the snap of sub zero temperatures currently in Poland caused a surge in the country's daily natural gas usage to record levels of 64 million cubic meters a day, or mcm.

When working at full capacity Plock consumes 115,000 mcm of gas per hour, which translates into 2.8 mcm a day, or over 4% of the current national demand. Trimming supplies to PKN Orlen and Police allows to improve the country's gas balance and protect public consumers and households.

Poland's gas storage facilities were 50% depleted, with 800 mcm of gas available, as of Monday.   -By Marek Strzelecki

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