PGNiG, Qatargas change LNG supply contract terms

Polskie Górnictwo Naftowe i Gazownictwo and Qatargas have signed a memorandum of understanding concerning the LNG supplies contract of June 29th 2009.

Pursuant to the memorandum, PGNiG and Qatargas have changed the terms on which the long-term contract will be performed in 2015.

According to the memorandum, Qatargas will place the LNG expected to be supplied to PGNiG in 2015 (approximately 1.5 bcm) on other markets.

The memorandum also sets out the terms on which PGNiG and Qatargas will agree on LNG supplies to the Świnoujście LNG terminal in 2015, depending on Poland’s energy demand.

PGNiG will cover the potential difference between the LNG price specified in the contract and the market price at which Qatargas sells the LNG originally contracted by PGNiG. If the price is not satisfactory to PGNiG, any unsold LNG supplies will be shifted to later years of the contract.

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Press Release; Image: Qatargas