The Polish Oil and Gas Company Group (PGNiG) and Centrica LNG Co. Ltd (Centrica) have signed a five-year contract for LNG supply, sourced from Sabine Pass LNG terminal, US.
The contract is on a DES delivery basis and will begin in 2018. Under the contract, up to nine cargoes will be delivered to the President Lech Kaczynski LNG terminal in Swinoujscie, Poland, where PGNiG recently booked additional regasification capacity. The primary source of the LNG will be the natural gas liquefaction terminal located at Sabine Pass, Louisiana, US.
This is the first medium-term LNG agreement signed by PGNiG Supply & Trading’s branch, which is dedicated to global LNG trading.
The agreement follows through on the company’s strategy of securing reliable and diversified gas supplies for Poland and its growing trading capability in the European market.
“Preceded by the long-term contract for LNG deliveries from Qatar and several spot deliveries in 2017, this agreement shows that we are stepping into a new level of global LNG market activity. This five-year agreement for American LNG deliveries is based on gas market conditions. We look forward to working with Centrica as a partner to continue to provide diversified supply into Poland”, said Piotr Wozniak, CEO and President of the Management Board of PGNiG.
“This agreement is the first of its kind in PGNiG’s planned portfolio of medium-term LNG agreements. Most of these LNG supply agreements will be dedicated to the gas markets of Poland and other Central European countries in order to increase the energy security of this region, which has historically been dominated by Russian gas”, added Piotr Wozniak.
“We are extremely pleased to have concluded this mid-term contract with PGNiG as part of Centrica’s strategy to build our global LNG portfolio. Our reliability, experience and trading capabilities mean we are well placed to deliver LNG into an ever growing number of markets around the world. We really look forward to working with the team at PGNiG over the coming years”, commented Jonathan Westby, Centrica Managing Director of Energy Marketing & Trading.