Interfax reported that Polish gas transmission operator Gaz System SA has collected five bids for a virtual reverse of gas via the Yamal Europe gas pipeline.

The service envisages the supply of an additional 2.3 billion cubic meters of gas per year from Germany. This makes up around a quarter of the gas imported from Russia 10 billion cubic meters was delivered in 2010.

The German market is considerably more competitive than the Polish market. Thus, prices for supplies of Russian gas to Germany are considerably lower than in Poland, although transport expenses for gas supplies to Poland are lower.

Supplies are possible from the Lwowek and Wloclawek points on the gas pipeline. Bids were submitted to reverse around 5.5 billion cubic meters per year - exceeding available capacity. The bids are being assessed.

Gaz-System plans to start the reverse supplies on November 1.

(Sourced from Interfax)