Polish state-controlled oil and gas company PGNiG announced Tuesday it signed its first medium-term liquefied natural gas (LNG) supply deal originating from Cheniere Energy’s Sabine Pass LNG export terminal in western Louisiana.
The five-year contract was closed with Centrica LNG beginning in 2018. Up to nine cargoes will be delivered during the term of the contract to the President Lech Kaczyński LNG Terminal in Świnoujście, where PGNiG recently booked additional regasification capacity.
PGNiG has a long-term LNG contract with Qatar and has purchased several spot cargoes this year. However, the company wants to move away from Russian gas dependency and diversification of sources is a priority, Kallanish Energy learns.
“This agreement shows that we are stepping into a new level of global LNG market activity,” said PGNiG CEO Piotr Woźniak, adding the deal is based on gas market conditions.
“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.”
Financial and volume details of the deal weren’t disclosed.
