PGNiG to take delivery of 95 million cbm of natural gas in mid-January

Another gas carrier delivering 95 m cubic metres of fuel is to arrive at the LNG terminal in Świnoujście in mid-January, the Polish Oil and Gas Company (PGNiG) said. The company emphasizes that from 2022 onwards, the terminal will be able to re-gasify 6.2bn cubic metres of gas.

As the PGNiG informed the Polish Press Agency, the company expects a gas carrier with the 150th cargo of LNG to arrive at the terminal in Świnoujście in the second half of January.

As PortalMorski.pl has reported – the ship in question is a Japanese LNG tanker Energy Innovator, which set off from the American port of Cove Point on 30 December and – according to current estimates – is due to arrive in Świnoujście on 18 January. The ship is carrying LNG cargo to Poland from the Dominion Cove Point LNG Terminal operating on the western shore of the Chesapeake Bay in Maryland.

“The cargo was purchased under a one-off contract on the spot market and came from the US. The delivery involves about 75,000 tonnes of LNG, which after re-gasification gives about 95 million cubic metres of natural gas” – PGNiG stated.

This year, the company can receive LNG cargoes at the Świnoujście terminal with a volume of 6.2 billion cubic metres after re-gasification per year, compared to 5 bcm in 2021 previous years (before the ongoing expansion), thus increasing its LNG import capacity. In 2024-2038, the re-gasification capacities will enable the import of 8.3 bcm of fuel per year. Market factors will determine the actual use of the reserved capacities.

“Liquefied natural gas is an element ensuring diversification and flexibility of PGNiG’s import portfolio. Thanks to this, the company may tailor the volume of LNG imports to the current market conditions, including prices, demand, logistic possibilities, the competitiveness of gas supplies through pipelines, etc. These factors will determine the final volume of LNG imports to Poland this year” – the company added.

PGNiG signed in May 2020 an agreement on reserving additional re-gasification capacities for the LNG terminal in Świnoujście, which refers to the expansion of this installation. The vast majority of the reserved capacities will be used to service long-term contracts with Qatari Qatargas (up to 2.7 bcm after re-gasification) and American Cheniere (from 2023, about 2 bcm after re-gasification).

“PGNiG has also concluded long-term contracts with companies from the US Venture Global group (a total of 7.4 bcm after re-gasification). The implementation will begin in 2023, enabling the purchase of cargoes with a volume of about 2 bcm of fuel after re-gasification. However, the contracts with Venture Global are concluded in the Free On Board formula, so PGNiG is responsible for receiving the cargoes from the liquefaction terminals and can then deliver them to any chosen re-gasification terminal. Therefore, the cargo purchased under the Venture Global contracts may, but do not have to, reach Świnoujście” – PGNiG pointed out.

The remaining part of the re-gasification capacity will be used depending on the needs resulting from PGNiG’s commercial strategy implementation.

“Both cargoes delivered under new long, medium and short-term contracts and spot deliveries could be involved. We also do not prejudge the directions from which these supplies will come. For example, PGNiG has received LNG cargoes in Świnoujście from Qatar, the US, Norway, Nigeria and Trinidad and Tobago” – the company added.

source: PortalMorski.pl