Swinoujscie Terminal Takes PLN 300 Million EBRD Loan

The European Bank for Reconstruction and Development (EBRD) has awarded a 300 million zloty (approx. €73.3 million) loan to Polish transmission operator Gaz-System for the construction of the Swinoujscie LNG terminal.

The loan, announced in a statement by the EBRD today, will help Poland to build its first LNG terminal, which is expected to begin operations from 2014. The terminal will take liquefied natural gas supplies from Qatari and other suppliers worldwide.

In its statement, the EBRD said that the loan was an important step towards Poland diversifying its energy supplies and ensuring its energy security away from its current sole source of gas, Russia.

"The significance of this LNG terminal is substantial for energy security in Poland and central Europe as it means diversifying both sources and routes of energy supply," EBRD Managing Director for Energy and Natural Resources, Riccardo Puliti, said today. "Over the past four years the EBRD has consistently worked on energy security issues in eastern Europe, as well as investing over €600 million in strategic underground gas storage and distribution in the region. Polskie LNG is a big step for the trans-European energy network."

The loan is the final step in the financing of the project, representing 11 per cent, with other financing coming from the company itself, the European Union and the European Investment Bank.

"By signing the loan agreement with the EBRD, Gaz-System has finalised the organisation of financing for the LNG terminal in Świnoujscie..." CEO of Gaz-System, Jan Chadam, said. "It is good news for the market, especially for the shippers, who would like to construct their purchase strategy based on the import of LNG."

The Swinoujscie terminal will have the capacity to supply Poland with 5 billion cubic metres of gas a year. The country currently imports 10 billion cubic metres of gas a year with domestic supply accounting for 5 billion cubic metres of supply a year.