PGNiG's first long-term deal US cargo lands in Świnoujście

PGNiG’s first long-term deal US cargo lands in Świnoujście

Poland’s state-owned gas company PGNiG said that the first LNG cargo under its long-term deal with Cheniere arrived at the President Lech Kaczyński LNG terminal in Świnoujście.

Image courtesy of Polskie LNG

The long-term contract, which was signed in November of 2018, will total approximately 39 bcm of natural gas over the 24 year period of the agreement, PGNiG reminded in its statement.

Speaking during the delivery ceremony, Piotr Woźniak, president of PGNiG, “Our portfolio of contracts with U.S. suppliers covers over 9 billion cubic meters of natural gas after regasification annually – that is more than we import from Russia. Such a volume strengthens Poland’s energy security, but also gives us the opportunity to actively participate in LNG trading on the global market.”

Oak Spirit – the LNG carrier that arrived at the terminal in Świnoujście – provided about 165,000 cubic meters of LNG, which after regasification equals about 95 million cubic meters of natural gas. It was the 65th delivery of LNG to Poland since the launch of the LNG terminal.

PGNiG signed a 24-year agreement with Cheniere Marketing International in November 2018. In 2019-2022, the total volume of supplies will amount to approximately 0.52 million tonnes of LNG or approximately 0.7 billion cubic meters of gas after regasification.

In the years 2023-2042, the total import volume will reach approx. 29 million tonnes (about 39 billion cubic meters after regasification) – which means that from 2023, PGNiG will buy approximately 1.45 million tonnes of LNG each year (around 1.95 billion cubic meters of gas after regasification).

Deliveries will be based on DES (delivery ex-ship) formula – delivery to the terminal in Świnoujście is provided by the seller.

Earlier, supplies of U.S. LNG were coming to Świnoujście as part of spot transactions and as part of a medium-term contract. PGNiG has received seven cargoes of such type so far.

In June 2017, the company received the first-ever LNG load from the United States – a spot supply from Cheniere Energy.