European gas price spikes on report of Russian gas cutoff to Poland

Shafaq News / European gas prices spiked in late trade April 26 after reports in the Polish media that Russia's Gazprom had suspended gas supplies to Poland.

The TTF month-ahead price jumped 18% on the news to Eur107/MWh by 1500 GMT, according to ICE data.

Polish media outlet Onet reported that Russia had suspended supplies to Poland delivered under the long-term Yamal contract between Gazprom and PGNiG.

It said the suspension had been confirmed by sources in the Polish government and PGNiG.

None of PGNiG, the climate ministry or Gazprom Export could be reached for comment April 26.

PGNiG imports Russian gas under a long-term import contract due to expire at the end of 2022 and officials have repeatedly said they would not extend it.

Last year, PGNiG imported 9.9 Bcm of Russian gas, meeting around 63% of demand.

Poland will be able to replace Russian gas imports with Norwegian gas once the 10 Bcm/year Baltic Pipe pipeline connecting the Polish, Danish and Norwegian gas networks comes online in October.

(S&P)