Current Report No. 50/2018
2018.10.16 22:05
Warsaw, October 16th 2018
Execution of LNG supply contracts with Venture Global Calcasieu Pass, LLC and Venture Global Plaquemines LNG, LLC.
Current Report No. 50/2018
Further to Current Report No. 35/2018 of January 26th 2018, the Management Board of Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG”, the “Company”) announces that after obtaining the required corporate approvals two binding long-term contracts (the “Contracts”) for the supply of liquefied natural gas (“LNG”) were signed on September 28th 2018 with Venture Global Calcasieu Pass, LLC and Venture Global Plaquemines LNG, LLC.
Each Contract provides for the purchase by PGNiG of approximately 1 million tonnes of LNG (i.e. approximately 1.35 bcm of natural gas after regasification) annually for 20 years. The deliveries may be further traded by the Company on international markets and will be made on a free-on-board basis.
The deliveries from Venture Global Calcasieu Pass, LLC and Venture Global Plaquemines LNG, LLC will be made via production facilities currently under construction in Louisiana: Calcasieu Pass LNG in Calcasieu Parish, due to be completed in 2022 at the earliest, and Plaquemines LNG w Plaquemines Parish, due to be completed not earlier than in 2023.
In the opinion of the PGNiG Management Board, the terms and conditions of the Contracts are satisfactory in the context of the PGNiG Group’s strategy to expand LNG trading on global markets. The price formula in the Contracts is based on the LNG price quoted based on the US Henry Hub index, including the liquefaction charge.
The announcement of information on execution of the Contracts for LNG supplies Venture Global Calcasieu Pass, LLC and Venture Global Plaquemines LNG, LLC was delayed on September 24th 2018 until today pursuant to Article 17(4) of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of April 16th 2014 on market abuse and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.
