The Arbitration Tribunal in Stockholm issued a partial judgment of settlements with Gazprom for buying gas under the Jamal contract from November 2017 – said Orlen on Wednesday. The Court dismissed the claims of Orlen and Gazprom and set a new, higher contract price from January 1, 2018.
As reported by Orlen, the Tribunal dismissed the company's claim to reduce the contract price from November 2017 or from January 2018, but also Gazprom's claim for an increase in the contract price from November 2017.
On Wednesday, Orlen said that he had received information about the issue of on July 1, 2025 by the AD HOC Arbitration Tribunal in Stockholm of a partial judgment in arbitration proceedings started on January 14, 2022 by the action of: PAO Gazprom and OOO Gazprom Export, which concerned, among others Changes in the contract price for gas supplied to PGNiG (currently Orlen) from November 2017 on the basis of a contract for the purchase of natural gas of September 25, 1996, i.e. Jamalski's contract.
The company reported in a statement that the Tribunal had dismissed the claim of Orlen to reduce the contract price from November 2017 or from January 2018, but also Gazprom's claim for an increase in the contract price from November 2017. It set a new, higher contract price as at January 1, 2018 and dismissed all of Gazprom's further claims on January 1, 2018.
In the initial assessment of Orlen, reverse settlement resulting from a partial judgment in the period from January 2018 to the earliest potential date of the next price change as part of renegotiations of 2020/2021 indicates the occurrence of a difference to pay by Orlen in an estimated amount of approx. $ 290 million.
“The recognition of claims originally made by Gazprom in the proceedings would result in the occurrence of a difference to pay by Orlen in the amount of approx. $ 1.7 billion” – added the company. She indicated that the Court did not specify the method of settlement of the parties resulting from the determination of the new contract price or awarded any amounts in this respect, and the determination in the scope of the abovementioned Settlements will first be made by the parties to the dispute. In the event of a dispute between the parties in this regard, this issue will be resolved at a later stage of the arbitration proceedings.
Orlen informed that he was analyzing the content of a partial judgment as well as the method of recognizing the financial effects in the financial results of Orlen and will continue to protect the company's interest under subsequent phases of arbitration procedure with Gazprom.
As the Company noted in a statement, the partial judgment of the Tribunal modifies the price conditions of the Jamal contract for the period from January 2018 to the earliest potential date of the next price change as part of the renegotiations of 2020/2021.
In the opinion of Orlen, the judgment of the Arbitration Court is one of the stages of multi-threaded proceedings between Orlen and Gazprom, which applies to the price conditions of gas purchases based on the Jamal contract in 2017-2022. In the next stage, the Tribunal will determine the price conditions for 2021-22.
“Orlen operates in accordance with the law and warns applicable sanctions, which currently prevent any payments arising from the judgment. Orlen is well prepared for the next legal steps and protecting the company's interest” – assured the company in a commentary sent to PAP.
She noted that the concern secured “important amounts” against Gazprom's claim, which will be resolved at a further stage of the dispute.
“At the same time, arbitration proceedings are underway for interest on overpayment under the Jamal contract in 2014-20” – said Orlen.
Orlen emphasized that as one of the first companies in the region he completely became independent of the supply of natural gas from Russia, and the legal dispute concerns the past and does not affect the ongoing activity and security of deliveries to recipients in Poland and the region.
“From April this year, none of the group's refinery also uses crude oil from Russia. The supply of natural gas to Orlen is assured on the basis of the company's own extraction in Poland and Norway, long -term contracting from the North Sea, runny nose, United States, as well as additional deliveries from EU countries, Ukraine, Egypt, Nigeria, Trinididad and Nig. Tobago, Equatorial Guinea, based on relations with stable and reliable suppliers, “the Polish concern pointed out. He added that thanks to long -term reservations in transmission infrastructure, Orlen has direct access to the market of the North Sea area and the LNG market, including using its own LNG ships fleet, thanks to which it strengthens commercial cooperation with Ukraine.
The basis for the conclusion of the contract was the intergovernmental agreement between Poland and Russia in August 1993 on the construction of a gas pipeline system for Russian gas transit and gas supplies. In 1995, a report was signed regarding the construction of the gas pipeline, and in 2003 an additional protocol, which was changed in October 2010.
The intergovernmental agreement provided for, among others Construction through Poland of over 680 km section of the Jamał -Europ gas pipeline – the so -called Jamalski gas pipeline – with a bandwidth of 33 billion cubic meters. gas per year.
Signed in September 1996 between PGNiG and Gazprom, the contract provided for a purchase by 2020 242 billion cubic meters. gas, Take-Or-Pay clause for reception 85 percent ordered gas and a ban on re -export.
In January 2010, PGNiG concluded an agreement with Gazprom Export on increasing deliveries to Poland and extending them to the end of 2037. The annex to the intergovernmental agreement provided for identical solutions. Both documents have not been signed. The government approved the agreement with Russia, but they were blocked by the European Commission.
The new intergovernmental agreement was signed only in October 2010. Increasing the supply of Russian gas to supplement the deficiencies in Rosukrenergo and delivery by the end of 2022. At the same time, the expiration of the transit agreement was agreed at the end of 2019. The annex to the contract abolished the clause on the ban on gas re -export without Gazprom's consent. The effect of arrangements from autumn 2010 was the transfer of operations on the Polish section of the Jamal gas pipeline to the Polish Gaz-System gas transmission system operator.
At the end of 2022, the Jamal contract expired. PGNiG did not intend to extend it, which he signaled in November 2019, informing the Russian concern.
Orlen merged with PGNiG in the autumn of 2022. ORLEN and his subsidiaries is a multi -energy group that has refineries in Poland, the Czech Republic and Lithuania and a network of gas stations, including in Germany, Slovakia, Hungary and Austria. It also develops oil and natural gas mining segment, petrochemical and energy segment, including renewable energy sources. He also plans the development of nuclear energy based on small, modular SMR reactors. (PAP)
AB/ Malki/
