Qatargas, PGNiG ink new LNG deal

Qatargas, the world’s largest liquefied natural gas (LNG) producer, signed a new supply deal with Polish Oil and Gas Company.

The side agreement is an addition to the existing 20-year contract the two companies signed back in 2009.

Under the terms of the new agreement, Qatargas will increase the volume of LNG currently supplied to PGNiG to two million tons per annum.

The chilled fuel will be supplied from Qatargas 3, a joint venture between Qatar Petroleum, ConocoPhillips, and Mitsui & Co., and will be delivered on board Q-Flex LNG vessels to the President Lech Kaczynski LNG terminal in Swinoujscie.

The new agreement will come into effect on 1 January 2018 and will run until June 2034.

Speaking of the agreement, Maciej Woźniak executive vice president of PGNiG added that it supports the development of an LNG hub in Poland.

It was also noted that the contract enables the implementation of PGNiG’s strategy to diversify natural gas supplies to Central and Eastern Europe.

The Polish company has already taken steps to becoming a global natural gas player through the opening of its LNG trading office in London in February. First transactions are expected by the end of the first quarter.

The office will be PGNiG’s international LNG trading center for short and medium-term LNG trading. PGNiG will also be sourcing alternative spot supplies for Poland’s LNG terminal in Świnoujście.

LNG World News Staff