GAZ-SYSTEM puts Gdańsk FSRU 2 on hold as open season procedure ends with insufficient number of binding orders

Poland’s natural gas transmission system operator GAZ-SYSTEM has closed the submission phase for binding offers in its open season FSRU 2 procedure which did not result in a sufficient number of binding orders to proceed with the implementation of the project envisaging installation of the second FSRU in the Gdańsk area.

Archive; Courtesy of GAZ-SYSTEM

The overall objective of the binding FSRU 2 open season procedure, which was launched in July 2023, was to confirm the interest of market participants in increasing the regasification capacity of the FSRU terminal by submitting long-term orders for the FSRU regasification services which would justify the implementation of the said project by GAZ-SYSTEM.

The procedure was closed on October 27 and “did not result in GAZ-SYSTEM obtaining binding orders at a sufficient level to proceed with the implementation of the FSRU 2 project. Nevertheless, the interest in the regasification services declared by the Participants imply that discussions may be continued in the future,” the company stated.

Currently, GAZ-SYSTEM continues its efforts aimed at building the FSRU 1 terminal in the Gdańsk area, which is designed to provide an annual regasification capacity of up to 6.1 bcm of gaseous fuel.

Following the second phase of the open season procedure completed in August, an agreement covering 100% of the regasification services was signed and thus provided the business case for further development of the project. Just recently, the Polish company shortlisted Japan’s Mitsui O.S.K. Lines and Norway’s BW LNG as potential suppliers of the first FSRU in the Gulf of Gdańsk.

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On the other hand, the planned FSRU 2 project intended to provide an additional annual regasification capacity of 4.5 bcm of gaseous fuel will be the subject of further analysis, GAZ-SYSTEM explained.

The hydroengineering infrastructure that will be built as part of the FSRU 1 terminal project will also provide for the possibility of a second storage and regasification unit development if market demand for the FSRU 2 is confirmed in the future.