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Poland's PGNiG plans to build gas drying unit on Yamal pipe

WARSAW (Reuters) — PGNiG is considering building a gas drying unit at the Yamal pipeline to prevent any future disruptions in deliveries from Russia’s Gazprom, its biggest supplier, the chief executive of the Polish state-run firm said.

In June, Poland temporarily halted supplies from Russia via the Yamal pipe citing poor quality gas. Gazprom at the time cited a technical issue that it said it was working resolve.

PGNiG’s officials said the gas sent via Yamal contained water. Poland, which does not have a drying unit, could not use the gas.

“The gas drying installation has to be ready by 2019 due to the announcement to cut off Russian transit through Ukraine,” PGNiG Chief Executive Piotr Wozniak told a conference on Monday.

Wozniak said the unit might cost up to 100 MM zlotys and a final decision was expected by the end of 2017.

He has previously criticised Gazprom over the gas price in long-term supply deals with PGNiG, as well as supply security.

In 2015, PGNiG filed for arbitration with the Stockholm Arbitration Tribunal in a dispute with Gazprom, seeking to change the pricing of their long-term contract.

Arbitration could run into next year.

Reporting by Agnieszka Barteczko; Editing by Edmund Blair

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