Following the visit of Poland’s President, Andrzej Duda to Washington D.C., the Polish Oil and Gas Company (PGNiG) signed an agreement with Venture Global LNG to buy additional 1.5 million tonnes per annum (MTPA) of liquefied natural gas (LNG). According to the agreement, the volume of LNG coming from the Plaquemines terminal will increase from 1.0 to 2.5 million tonnes per year, and specifically from 1.35 to 3.38 bcm of natural gas after regasification.
Mainly, the commercial operated date is expected to be around 2023, marking also the beginning of the deliveries.
The agreement between the two partners increases PGNiG’s overall commitment with Venture Global LNG projects to 3.5 MTPA (4.73 bcm), sourced from Calcasieu Pass (1.0 MTPA) and Plaquemines LNG (2.5 MTPA).
Moreover, United States Secretary of Energy, Rick Perry and Secretary of State for Strategic Energy Infrastructure of Poland, Piotr Naimski attended the signing ceremony.
Thus, in light of the agreement, the Secretary of Energy commented that Poland and the US have a strong relation reflecting the commitment they both have to energy security and an understanding that true energy security is achieved through energy diversity.
He also added that under President Trump’s leadership, the two partners have launched the U.S.-Poland Strategic Energy Dialogue which fosters and supports partnerships just like this. We look forward to even more in the months and years to come.
Piotr Woźniak, President of the PGNiG Management Board commented
We are increasing our LNG portfolio in terms of volumes, which we will receive from the USA after 2022, i.e. after the expiration of the Yamal contract.
Maciej Woźniak, Vice-President of PGNiG Management Board for Trade continued that by 2022 and 2023, they will receive the overall of 3.5 million tonnes of LNG, on an annual basis, from Venture Global LNG’s export facilities; The amount is equal to 4.73 bcm of natural gas per year following regasification.
PGNiG contracts with Venture Global LNG projects have been concluded in September 2018 for 20 years in the FOB (Free-on-Board) formula. This means that from the moment of loading in the liquefaction facility, the purchaser, in this case PGNiG, controls the LNG on board, including deciding on the cargo’s destination.
The Federal Energy Regulatory Commission (FERC) recently issued, on May 3, a Final Environmental Impact Statement for both the Plaquemines LNG facility and the associated Gator Express Pipeline.
PGNiG contracts with Venture Global LNG projects have been concluded in September 2018 for 20 years in the FOB (Free-on-Board) formula. This means that from the moment of loading in the liquefaction facility, the purchaser, in this case PGNiG, controls the LNG on board, including deciding on the cargo’s destination.
