PGNiG Looks at US LNG Imports within 3-4 years

The Polish Oil and Gas Company (PGNiG) is considering contracting US LNG supplies as an attractive counterbalance to Qatari and Russian supplies, CEO Marius Zawisza said June 2.

"We recently talked with investment banks and US entities involved in the sale of LNG and the market is very interesting in the context of future imports of LNG to our LNG terminal," Zawisza told PAP.

Poland’s Treasury Ministry said in early June it would underwrite any financial losses incurred if there is a delay in Qatari LNG supplies to the gas port in Swinoujscie, but PGNiG is keen to ensure as much LNG can imported before it starts negotiations with Gazprom over long-term gas import contracts later this year.

The LNG terminal in Swinoujscie was intended to be launched in late 2014 or early 2015, with Poland paying on a take or pay basis. It will allow the Polish import 5 billion cubic meters of gas per year. PGNiG would buy from Qatargas 1.3 billion cubic meters of gas per year for 20 years. Poland consumes about 15 billion cubic meters.

The Yamal contract for gas supplies from Gazprom expires in 2022. Under the agreement, the company must terminate its continuation five years before its completion.

PGNiG said it does not rule out that, with the development of domestic shale gas production, the contract with Qatar, and possible future purchases of gas from the US, Russian imports could be abandoned or significantly restricted in trade agreements after 2022. Negotiations with Gazprom in the current contract open in November.

"We are the third country after Germany and Italy, in terms of the volume of gas received,” Zawisza said. “We believe that for us, that price will be reduced," he added.

Deputy Prime Minister Janusz Piechociński said May 30 that while Poland should look for other sources of potential supply of gas, it shouldn’t sacrifice the cheapest gas, "from Russia."