Poland's PGNiG Finalizes LNG Deal with U.S.' Venture Global

Posted by Michelle Howard
Wednesday, October 17, 2018

Poland's dominant gas firm PGNiG has finalised the terms of a deal to buy liquefied natural gas (LNG) from U.S. company Venture Global LNG, part of a move to cut reliance on Russian supply, the company said on Wednesday.

PGNiG struck an agreement with Venture Global in June to acquire 2 million tonnes of LNG a year for 20 years, equivalent to 2.7 billion cubic metres of natural gas after regasification.

It has now signed contracts with two Venture Global subsidiaries running from 2022 and 2023 respectively, under which it will buy the LNG under the Free on Board (FoB) formula, meaning the seller pays for loading and the buyer pays other costs to destination.

"Thanks to the FOB formula, we will be able to decide, independently and based on our needs at a given time, whether the purchased LNG load should be directed to Poland or be used for further trading through our London office," PGNiG Chief Executive Piotr Wozniak said.

Poland consumes around 17 bcm of gas annually, more than half of which comes from Russia's Gazprom under a long-term deal that expires in 2022.

PGNiG does not intend to extend the agreement, it said, and is taking steps to secure supplies after that date.

"Our predecessors wanted to sign a contract with Gazprom binding until 2037," Poland's Prime Minister Mateusz Morawiecki told a press conference on Wednesday. "This would be like putting handcuffs on Poland and making us reliant on Russia for many years."

Polish officials have repeatedly said that Warsaw pays too much for Gazprom's gas and have opposed a Russian plan to build a new gas pipeline across the Baltic Sea, saying it is aimed at strengthening its dominant market position in the region.

Reporting by Anna Koper; Writing by Agnieszka Barteczko

Categories: LNG

Related Stories

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

Woodside to Shed Some Trinidad and Tobago Assets for $206M

Keel Laying for Wind Flyer Trimaran Crew Boat

Woodside Inks Long-Term LNG Supply Deal with China Resources

Argentina YPF to Shed Offshore Exploration Projects

Shell Predicts 60% Rise in LNG Demand by 2040 with Asia Leading the Way

Petronas Preps for Sabah-Sarawak Gas Pipeline Decom Op

Kazakhstan Looks to Improve Oil Production Agreements Terms

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

The Five Trends Driving Offshore Oil & Gas in 2025

Current News

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com