Market Screening Shows Need for Higher Regasification Capacity at Polskie LNG
The results of the Market Screening conducted in late 2012 and early 2013 by Polskie LNG S.A. indicate a significant demand for increased regasification capacity, as well as other services that may be provided by Świnoujście LNG Terminal.
The market potential identified in the survey is sufficient to support the concept of Terminal’s expansion, including the construction of the third tank. In 2020, the demand for additional services along with the regasification capacity already contracted will allow to achieve the approximate maximum regasification capacity the extended Terminal will be capable to deliver.
The main objective of Market Screening procedure was to determine the demand for development of LNG Terminal in Świnoujście, including increased regasification capacity and the provision of additional services, from entities potentially interested in LNG market. These services would primarily include LNG truck and rail cistern loading, bunkering services and reloading to smaller vessels, including LNG storage in the terminal in the period from 2015 to 2029.
“These results are very promising for the LNG Terminal. The market is sending us a clear message that we should continue the works which will further allow us to decide about LNG Terminal’s expansion. The demand for LNG-related services turned out to be so high that it may outstrip Terminal’s capacity, even after the said expansion. Moreover, the market is not only interested in increased regasification capacity, but it also seeks additional services, mainly truck and rail cistern loading, and reloading to smaller vessels. These findings demonstrate how rapidly the LNG trading market and related opportunities are changing”, said Rafał Wardziński, President of Polskie LNG S.A.
Twenty-two Polish and foreign entities – including gas and energy trade companies – took part in Market Screening procedure, conducted from 20 November 2012 to 11 January 2013. In addition, several foreign (also German and Swedish) companies expressed their interest in the services provided by LNG Terminal in Świnoujście, although they did not formally participate in the survey.
Market Screening findings clearly indicate the demand for increased regasification capacity from entities potentially interested in services provided by the LNG Terminal. As soon as in 2015, the domestic demand may exceed the planned capability of the Terminal (regasification capacity up to 570 thousand Nm3/h). As declared in the survey, the demand in 2020, including the regasification capacity already contracted, may reach the level of approx. 800 thousand Nm3/h, which is almost the maximum possible regasification capacity planned for the terminal after expansion (860 thousand Nm3/h). The current capacity of the terminal will allow to import 5 billion m3 of natural gas annually, and after the expansion – involving the construction of the third LNG tank – its import capacity may increase to 7.5 billion m3 per year. Current Polish annual gas consumption amounts to over 14 billion m3.
The possible expansion of Świnoujście LNG terminal will be decided upon yet in 2013. At this stage, Polskie LNG S.A. will continue economic, legal and technical analyses of the Terminal’s prospective expansion. Before any binding business decision is made, it is essential to determine project’s profitability in relation to costs incurred, and to evaluate its legal and technological feasibility. The conclusions from such analysis shall allow to take informed investment decisions with regard to the expansion of the LNG terminal in Świnoujście and provision of additional functionalities.
LNG World News Staff, March 03, 2013; Image: Polskie LNG