Gazprom on the Polish Fuel Market 1989-2014

Abstract

In the second half of the twentieth century the role of volatile fuels in the global economy steadily grew. In many countries it is even dominant – fuels such as natural gas are used in many branches of economy and households. Also in Poland gas consumption is constantly growing. Poland does not have a sufficiently large amount of “blue fuel” that would satisfy all the needs of business and households. Due to the geographical location, as well as geopolitical, historical and economic conditions, major supplier of natural gas to Poland is Russian fuel concern Gazprom. Since its beginnings it is present on the Polish market which is – at the same time – from the first years od the souvereign Third Republic of Poland. Thanks to the privileged position on the Polish fuel market concern leads monopolistic practices: concluding favourable to itself long-term contracts for natural gas supplies, imposition of fuel prices (highest for Poland in the entire European Union), control over company responsible for gas distribution to the Western Europe, delaying development of strategic pipeline leading in this direction. Especially in recent years many actions taken by Gazprom have raised concern in the environment of Polish politicans and economists. The most dangerous of these unfavourable activities are interruption or limitation of gas supplies as a form of economic blackmail aimed at other countries (for few times also experinced by Poland). As a result, our country remains significantly dependent on Russian gas although Poland for more than 20 years has become closer to the countries of Western Europe and since 10 years has been a member of the European Union. In order to reduce the dependence of the Polish economy on gas supplies from the East initiatives to acquire this fuel from other sources has been taken: diversification or alternative supplies from countries other than Russia, exploration of unconventional gas (shale gas) and construction of a gas terminal to receive liquified natural gas (LNG).