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Poland's PGNiG says aims to maximise use of Baltic Pipe, reverses earlier stance

·1-min read
FILE PHOTO: Electric poles are pictured in front of the PGNiG Termika Zeran thermal power station after sunset in Warsaw

WARSAW (Reuters) - Polish gas company PGNiG said it aims to fully use its booked capacity on the Baltic Pipe from Norway, reversing its stance after saying it would not do so as soaring prices were likely to curb demand.

The Baltic Pipe, capable of shipping up to 10 billion cubic metres (bcm) of gas per year from Norway, where PGNiG produces the fuel, will open on Oct. 1.

The company said on Thursday it planned to ship 4.5 bcm of gas per year via the link, using little more than half of the capacity it booked. [nL5N2XB3ND}Reaching a targeted capacity is a function of several factors including technical capacity, market demand, and flexibility needed to balance the system, PGNiG said in a statement on Friday. In a statement, the company also said it has a diversified supply portfolio for gas produced in Norway, including contracts with Denmark's Orsted, Poland's Grupa Lotos and other suppliers it did not disclose.

PGNiG's gas output in Norway is set to increase to 3 bcm in 2022 and to 4 bcm in 2027, the company said. "Today's statement likely aims to show that PGNiG will be flexible in approach to filling the pipeline with contracts and may boost it," said Kamil Kliszcz, head of research at BM mBank brokerage.

"It may also aim to clarify any doubts as yesterday's declaration may have been interpreted that technical issues stand in the way of the full usage of booked capacity."

(Reporting by Marek Strzelecki; Editing by Tomasz Janowski)

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