Poland Takes Third US LNG Cargo

Polish state gas company PGNiG has received its third LNG cargo from Cheniere, it said April 28. Under the 2018 long-term contract between both companies, starting from 2023 the annual LNG volume to be delivered by the US producer will increase to 1.95bn m³ after regasification. The previous cargo arrived at the start of April; the first came last year.

The delivery comes when spot prices in northwest Europe are lower than spot prices in the US even before the costs of shipping and regasification are taken into account.  

Gaslog Warsaw delivered about 70,000 metric tons of LNG, or about 95mn m³ of pipeline gas.  The cargo arrived from the Sabine Pass export terminal on the Gulf of Mexico.

"Despite the current turmoil in the world related to the coronavirus pandemic, LNG supplies flow to Poland as planned and without any disruptions. In this respect, we can count on the reliability and timeliness of our contractors," said PGNiG CEO Jerzy Kwiecinski. "LNG import is one of the pillars of our country's energy security, which we base on solid foundations of cooperation with our American partners among others," he said.

Cheniere's CCO Anatol Feygin said his company was "pleased to continue to reliably deliver LNG to our customer PGNiG," and that the company aimed to provide a secure source of US natural gas for Poland, "now and in the future."

According to the agreement, the volume of supplies covers a total of around 0.7bn m³ in the entire period of 2019-2022, and throughout the period of 2023-2042 it will add up to about 39bn m³ of pipeline gas. PGNiG also has a long-term LNG contract with Qatar, as part of its strategy to cease buying Russian gas when its contract with Gazprom ends in 2022. It is yet to receive compensation from the Russian state giant for overcharging for gas.