Saipem-led consortium seeking $49 mln from Polskie LNG

Polskie LNG, the operator of the first Polish LNG terminal in Swinoujscie has been requested to pay additional US$49 million to the Saipem-led consortium that built the terminal. 

According to a filing to the Warsaw Stock Exchange, the Polish construction company PBG, which is part of the consortium, was notified by the Dentons Europe law firm that the consortium filed a request for arbitration against Gaz System’s unit, Polskie LNG.

The proceedings were initiated in connection with a contract for the development of detailed design, construction and commissioning of the Swinoujscie LNG terminal signed in July 2010.

The consortium will pursue claims for payment of additional consideration related to the implementation of the contract in a total amount not exceeding 195 million Zlotys.

In March last year, Saipem sought additional payments from Polskie LNG to complete the construction of the terminal, however, due to delays, the company operating the terminal declined to increase payments. Even the Polish treasury minister got involved in solving the dispute over the delay-plagued project.

The terminal received its commissioning cargo in December while the first commercial cargo was delivered to the facility just over a month ago.

The LNG terminal in Swinoujście is designed to receive, regasify and supply of up to 5 billion cubic meters of natural gas per year to Polish transmission grid. There are plans on doubling the terminal’s capacity as well as adding LNG bunkering infrastructure.

LNG World News Staff