PGNiG (Polish Oil and Gas Company) signed amendments to agreements with American companies Venture Global Calcasieu Pass, LLC and Venture Global Plaquemines, LLC to purchase another 2 million tonnes per annum (MTPA) of liquefied natural gas for 20 years. As a result, the volume of LNG contracted from Venture Global LNG by PGNiG will increase up to 5,5 MTPA, which equals approximately 7.4 bcm following regasification.
“The contracts signed today are another important step on the way to full energy security of our country. The American gas which will be supplied by a reliable and predictable partner, together with the fuel that will flow to Poland via the Baltic Pipe gas pipeline from Norway, will allow us to become independent from supplies from the eastern direction. Diversifying the sources of gas imports and the possibility of choice, as well as the freedom to trade in the purchased fuel, increases Poland’s energy independence,” commented Jacek Sasin, Deputy Prime Minister and Minister of State Assets.
“The import of LNG allows PGNiG to diversify sources and routes of supply of natural gas. This way we can provide Polish customers with energy security – constant and uninterrupted gas deliveries. This is particularly important considering that natural gas will be a bridge fuel in the process of energy transition of the Polish economy. At the same time, access to American LNG gives us opportunity to develop trade of this fuel on the global market – for this purpose we will charter LNG carriers to transport liquefied natural gas. In this respect, we value cooperation with Venture Global LNG, as it brings us the possibility of achieving our strategic goals,” commented Paweł Majewski, the President of the PGNiG Management Board.
“Venture Global is proud to expand our existing partnership with PGNiG to provide a clean and reliable supply of American LNG to Poland. Since 2018, our two companies have significantly increased our cooperation, nearly tripling the volume of LNG Venture Global will export to PGNiG. Poland will lower its carbon footprint and diversify its energy mix by incorporating more American natural gas into its portfolio. Pivoting towards cleaner natural gas from the United States will not only increase Poland’s energy security but also decrease its carbon emissions, and Venture Global looks forward to supporting our partner PGNiG in these efforts for years to come,” commented Mike Sabel, Chief Executive Officer of Venture Global LNG.
The amendments relate to agreements signed by PGNiG and Venture Global LNG companies in 2018. They determine the increase in the sales volume of liquefied natural gas. In case of the sales and purchase agreement with Venture Global Calcasieu Pass, LLC the amendment provides for an increase in the volume of LNG purchased by PGNiG by 0.5 MTPA to 1.5 MTPA. While the amendment to the agreement with Venture Global Plaquemines, LLC increases the volume of supplies of LNG by 1.5 MTPA to 4.0 MTPA. Thanks to the amendments the total volume of liquefied natural gas that PGNiG will purchase from both Venture Global LNG companies for the period of 20 years will increase to a total of 5.5 MTPA, i.e. to approx. 7.4 bcm after regasification.
The amended agreements are contracts based on the free-on-board (FOB) formula, which means that the purchaser, i.e. PGNiG, is responsible for the loading and transportation of the purchased gas. LNG will be collected from two liquefaction facilities on the Gulf of Mexico – Calcasieu Pass and Plaquemines. The first supplies from Venture Global LNG are planned for the beginning of 2023.
About Venture Global LNG
Venture Global is a long-term, low-cost provider of U.S. LNG to be sourced from resource rich North American natural gas basins. Venture Global is currently constructing or developing 70 MTPA of production capacity in Louisiana to provide clean, affordable energy to the world.