Extra EU Grant for the First Polish LNG Terminal

The European subsidy for the construction of  Poland's LNG terminal in Swinoujscie has been increased by €23.3 million, up to €134 million.

According to the Polskie LNG, the additional funding, financed by the Operational Programme - Infrastructure and Environment (OPI&E) programme, will bring reduction of tariffs,  “which means that the services offered by the LNG terminal will be cheaper for our potential customers” – explains the CEO of the company Rafal Wardzinski.

Polskie LNG was established in 2007 to construct and operate the first LNG terminal in Poland, located in Swinoujscie in the Northwestern corner of Poland, near the German border.

The company is owned by national gas transport infrastructure operator, Gaz System, which is owned by the State Treasury. The construction of the LNG terminal is co-financed by the OPI&E and the EU Energy Programme for Recovery.

The overall value of the contract totals zł3 billion and in addition to EU funds, is financed by Gaz-System, European Bank of Reconstruction and Development and European Investment Bank.

The terminal will be able to receive up to 5 bcm per year with a possibility of extension to 7.5 bcm per year. Initially plans saw the terminal operating in 2010, however current expectations see the unloading of the first gas carriers in mid-2014 the earliest. Poland has signed a contract for delivery of over 1 bcm per year with Qatar Gas.

The construction of Gazoport in Swinoujscie is considered a strategic investment by Warsaw. Poland imports almost 10 bcm of gas a year, almost entirely from Russia. Domestic supply accounts for 5 bcm of supply per year.