2 July 2018

Arbitral Tribunal Has Rejected PGNiG’s Claim to Change the Pricing

On June 29th, Gazprom Export received a First Award of the arbitral tribunal regarding the contract for the gas supplies to PGNiG. The arbitral tribunal has accepted Gazprom Export’s arguments, and has fully rejected PGNiG’s claims to change the pricing that were filed in the course of the proceedings.

The right of each party to claim a price revision in the case of substantial changes on the market is initially foreseen in the contract. The tribunal has confirmed such right for PGNiG, but has not agreed with the way to change the price and pricing formula suggested by the Polish company. Among others, the tribunal has neither accepted PGNiG’s arguments that the only relevant pricing factor in the long-term contracts were the hub prices. 

The tribunal will produce a final award taking into consideration the conclusions and principles set by the First Award, and after additional consultations with the parties.

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