Polish PM seeks to reassure citizens about natural gas supply after Russia cuts off Poland and Bulgaria

Polish Prime Minister Mateusz Morawiecki has tried to assure his country that gas supplies will not be cut despite a decision by Russia’s Gazprom to cut deliveries because Poland refused to make payments in rubles. But demand for other fuel sources, including coal, has picked up and many analysts fear the country could face an energy crisis by the fall.

Gazprom said on Tuesday it would stop supplies to Poland and Bulgaria, Russia’s first move to cut gas supplies to Europe. Poland gets about 55 percent of its gas from Russia under a contract that was due to expire at the end of this year. Bulgaria relies on Gazprom for about 90 percent of its gas.

Gazprom’s move was seen as retaliation for Poland’s strong support for Ukraine in its war with Russia. Poland has been a key supplier of military equipment to Ukraine, and Warsaw has taken a hard line with other European countries, notably Germany, which have not provided the same support.

Morawiecki said on Wednesday that his government was prepared for Gazprom’s announcement and assured Poles that gas would continue to reach consumers. “We will do everything possible so that people can heat their homes and cook their meals,” said Mr. Morawiecki.

Poland’s state gas company, Polskie Górnictwo Naftowe i Gazownictwo SA, or PGNiG, said no customers had been affected by Gazprom’s decision. “Currently, despite Gazprom’s cessation of deliveries, PGNiG customers receive gas according to their demand,” the company said in a statement late Tuesday.

The Bulgarian Minister of Energy said that his country can meet the needs of users for at least a month. “Alternative supplies are available, and Bulgaria hopes that alternative routes and supplies are also secured at the EU level,” Energy Minister Alexander Nikolov said.

Poland has been diversifying away from Russian gas for years and PGNiG said it would make up some of the initial shortfall by buying gas from Germany and the Czech Republic. It can also buy more liquefied natural gas and ship it through Poland’s recently expanded Swinoujscie LNG terminal on the Baltic Sea. And a new pipeline bringing gas from Norway is expected to be completed this fall.

Mr. Morawiecki said Poland also has substantial gas reserves and its storage capacity is 76 percent full, far more than most European Union countries. The government said it won’t need to draw on reserves and plans to increase storage to bring it to 99 percent. “No blackmail threatens us,” Morawiecki said. “Today we are showing what a responsible long-term policy is, the continuity of that policy and care for the safety of Poles.”

However, the abrupt cancellation of gas supplies from Russia is expected to leave many people looking for alternative energy sources, including coal.

Poland has long been a major user of coal for home heating and the country is alone among European nations in using more coal-derived fuel for heating now than in 1990. About 70 percent of Poland’s energy is generated by burning coal and the industry is a major employer.

National and local governments have been trying to move households away from coal and toward natural gas. The cities of Warsaw and Krakow, which often have suffocating air pollution, have banned stoves that burn solid coal and wood. Warsaw has also offered subsidies to help owners replace coal ovens.

With gas supplies now tight, many consumers are expected to stick to their coal-fired ovens. But coal suppliers say customers will be surprised when it comes to buying the fuel.

The price of coal has skyrocketed in recent months, partly due to the war in Ukraine and Poland’s decision to ban imports of Russian coal.

Mroczek Jacek, who runs a small coal supply operation in Modlin, north of Warsaw, said prices had risen to around 2,500 zlotych a tonne from 700 zlotych a year ago. “People aren’t thinking about coal right now because it’s spring,” Jacek said Wednesday. But when they look to buy, he added, “it will be a tragedy because people will realize the problem.” He compared coal to “black gold” because of its increasing value.

Mr. Jacek said he has also been trying to stock up on wood as a fuel source for customers. But he said it, too, has become scarce and expensive.

In Kiełpin, which is also north of Warsaw, coal trader Aleksander Marasek has marveled at the high cost of coal. He bought a supply of fuel in January for 1,500 zlotych and recently received an offer to buy Russian coal for almost twice as much. “I don’t sell Russian coal, only Polish,” he said defiantly as he sat in his small office on Wednesday. The small yard outside included three large piles of coal amid piles of scrap metal.

Mr. Marasek said he sells charcoal primarily to older people who haven’t retrofitted their furnaces to natural gas. And he said that most of his clients have not yet made up their minds to buy charcoal due to the warm spring temperatures. “I don’t know what people will do,” he added when asked about the price shock many will face. “Coal prices continue to rise. And we have problems because of the war.”

With Associated Press reporting

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