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PGNiG prepares to up LNG capacity

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Hydrocarbon Engineering,

To increase the possibility of supplying more LNG to the Central Europe region, Polish Oil and Gas Company (PGNiG) has reserved an additional 35% of regasification capacity at the President Lech Kaczynski LNG terminal in Swinoujscie, Poland.

PGNiG has seen increased demand for gas in Poland and opportunities to sell the commodity to other countries in the region. It has been working to increase its engagement in the LNG market over the last year, has contracted additional volumes with Qatargas, and received the first ever supply of LNG from the US.

PGNiG has been exporting gas to Ukraine since 2016. While PGNiG currently has 65% of the regasification capacity of the President Lech Kaczynski LNG terminal at its disposal, it has reserved an additional 35% of regasification capacity to increase LNG import opportunities. It will be able to use the extended capacity starting from 1 January 2018, meaning that it will be able to use the full capacity of the terminal as of next year.

The current annual capacity of the President Lech Kaczynski LNG terminal amounts to 5 billion m3. Its operator – Polskie LNG, subsidiary of Gaz-System – has recently decided to raise regasification capacity up to 7.5 billion m3.

“We have had over a year of intensive exploitation of the terminal. We have signed the second long-term contract for LNG with Qatargas and we received three spot supplies. Demand for gas in Poland is growing. We are also increasing export of the commodity to Ukraine,” commented Piotr Wozniak, President of the Management Board at PGNiG SA.

Since the first commercial LNG delivery to the terminal in Swinoujscie in June 2016, over 3 million m3 of LNG has been supplied to Poland, which amounts to about 2 billion m3 of natural gas after regasification. The LNG came from a long-term contract with Qatar, as well as from spot deliveries from the US and Norway. In 2016, the import from Qatar amounted to circa 1 billion m3 of natural gas. Considering only the supplies from long-term contracts with Qatargas, during the whole 2017 there will be circa 1.3 billion m3, and 2.9 billion m3 of gas as of 2018.

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