Polish state oil and gas company, PGNiG, has booked more regasification capacity at the country’s President Lech Kaczyński LNG Terminal in Świnoujście, Kallanish Energy reports.
As a result of an open season competition carried out by terminal operator Polskie LNG, PGNiG will increase its regas capacity at the terminal by up to 66% from 2024 onwards.
PGNiG currently has 5 billion cubic meter per year (Bcm/y) regas capacity booked at the facility. From 2022-2023, the volume will increase to 6.2 Bcm/y; and from 2024 it will reach 8.3 Bcm/y. The growth is enabled by an ongoing expansion investment at Poland’s sole terminal.
“We are satisfied with the regasification capacity we have been allocated. It will enable us to effectively implement PGNiG’s plans to diversify gas imports and expand its trading activities on the gas market in Central and Eastern Europe,” said PGNiG CEO Jerzy Kwieciński.
Last year, PGNiG imported 3.43 Bcm of LNG both on spot and term contract basis. Imports in the first quarter of 2020 were 34% higher year-on-year, demonstrating the trend of growing demand for LNG purchases.
As the company approaches the end of a long-term natural gas supply contract with Russia’s Gazprom in Dec. 2022, it’s boosting efforts to diversify sources of supply. It currently buys LNG from Qatar, the U.S. and Norway.
From 2023, the company will start importing 1.95 Bcm/y from the U.S. under a long-term contract with Cheniere. Further deals are expected as Poland aims to increase the share of LNG in its energy mix, which in 2019 stood at 23%.
PGNiG is responsible for all the supplies coming in the Świnoujście terminal.
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