Poland's gas monopoly PGNiG said on Wednesday it had cut gas supplies to the country's top refiner PKN Orlen and chemical companies Pulawy and ZCH Police.

 

Gas pipe operator Gaz System sought the cut expecting a hike in gas demand beyond 70 million cubic metres a day from some 65 million at present, PGNiG said, as severe frost hit the country at the weekend.

 

On Tuesday Russian gas monopoly Gazprom lowered gas exports to Europe, its largest foreign market, to cover an increase in domestic demand also caused by a cold snap.

 

"This is a standard procedure. Temperatures are down, there's higher demand for gas and PGNiG already filed for using compulsory stocks," she added. "To do that, we need to use all tools at hand and commercial limitations are one of them."

 

The state-controlled PGNiG imports most of the gas it uses from Russia.

 

A sudden cold snap and a pending regulatory decision on price hikes mean the loss of millions of zlotys on gas trading daily as the price PGNiG pays for gas from Russia is higher than the price the regulator lets it apply in sales to local clients.