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

CNOOC Launches New Offshore Oil Development in Southern China

Fugro Nets Mubadala Energy’s Deepwater Gas Job in Asia

Velesto Agrees $63M Jack-Up Drilling Rig Sale with Indonesian Firm

TotalEnergies Sells Stake in Malaysia’s Block to Thailand’s PTTEP

Eni Makes Significant Gas Discovery Offshore Indonesia

Harbour Energy to Sell Stakes in Indonesian Assets to Prime Group for $215M

CNOOC Puts New South China Sea Development Into Production Mode

Synergy Marine Group Completes Conversion of LNG Vessel to FSRU

TotalEnergies Inks 10-Year LNG Supply Deal with South Korea’s KOGAS

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Current News

Yinson Production Cuts First Steel for Vietnam-Bound FSO

CNOOC Makes Major Oil Discovery in Bohai Sea

DOF Bags Two Deals in Asia-Pacific Region

CNOOC Launches New Offshore Oil Development in Southern China

Saipem Nets Multibillion-Dollar Job at World's Largest Offshore Gas Field

Indonesia Tenders Eight Oil and Gas Blocks as Output Declines

Fugro Nets Mubadala Energy’s Deepwater Gas Job in Asia

EnQuest Set to Top 2025 Production Forecast on Southeast Asia Gains

Velesto Agrees $63M Jack-Up Drilling Rig Sale with Indonesian Firm

TotalEnergies Sells Stake in Malaysia’s Block to Thailand’s PTTEP

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