Poland Agrees US LNG Purchase Terms

Polish Oil & Gas Company (PGNiG) has agreed the heads of terms for a gas purchase contract with US Venture Global LNG from its two planned liquefaction facilities, the two firms said June 26. The cargoes will be sold free on board so will not necessarily all come to Poland.

The agreement covers a total of 2mn mt/yr for 20 years, sourced from the Calcasieu Pass LNG and Plaquemines LNG plants which are expected to be completed in 2022 and 2023, by which time PGNiG's contract with Russian Gazprom will have expired.

Venture Global said PGNiG was one of central Europe’s leading utilities and suppliers of energy, as it secures the long-term supply of LNG. "PGNiG will be joining our existing global partners Shell, Edison, Galp and BP in our Calcasieu Pass project and become one of our foundation partners for Plaquemines LNG.” 

Calcasieu has already notched up agreements to sell 6mn mt/yr, of a planned 10mn mt/yr.

PGNiG said it looked forward to starting long-term co-operation with its new partner: "This is an important step for PGNiG in developing our activities on LNG market. Purchasing of liquefied natural gas in the USA will not only allow further diversification of our import portfolio following 2022, but will also let us develop our trading competences and will enable PGNiG’s presence as a global LNG market player."

See also NGW's article about PGNiG's agreement on a termsheet for an eventual 2mn mt/yr contract with Sempra's Port Arthur LNG starting 2023, also signed June 26 at the World Gas Conference.

Executives from Poland's PGNiG and US supplier Venture Global LNG at the June 26 signing (Photo credit: PGNiG)