U.S. LNG can cut Gazprom’s dominance, Polish minister says
The United States liquefied natural gas (LNG) could impact Gazprom’s position in the European market according to Piotr Naimski, Polish minister for oil and gas infrastructure.
Speaking at an LNG conference, Naimski noted that LNG has become a global product and that with certain decisions, Gazprom’s dominance in the European market could be significantly reduced, Reuters reports.
Poland imports most of its natural gas from Russia, however, the country has secured its first U.S. LNG cargo in April and is already receiving liquefied natural gas supplies from Qatar under a long-term contract.
As reported in April, Poland secured a cargo from the Houston-based LNG player, Cheniere’s Sabine Pass LNG export facility. The cargo is set to be delivered by mid-June.
Naimski further added that, with U.S. LNG prices being linked to the Henry Hub and not to the London market, balancing the price with the European market would see U.S. exporters covering the transport costs.
Poland imports LNG through its President Lech Kaczyński terminal in Swinoujscie operated by Gaz-System’s unit Polskie LNG. It is Poland’s flagship project to diversify gas supplies and reduce dependence on pipeline imports from Russia.
The state-owned Gaz-System, made the decision to increase the terminal’s capacity from the current 5 billion cubic meters per year to 7.5 bcm/y.
LNG World News Staff