08.11.2018 PGNiG: 24-year contract with Cheniere signed – deliveries of American LNG to Poland will commence in 2019
Polish Oil and Gas Company (PGNiG) and Cheniere Marketing International LLP have signed a long-term agreement for supplies of liquefied natural gas from the USA.
In 2019-2022 the volume of supplies will total approximately 0.52 million tonnes of LNG, or approx. 0.7 bcm of natural gas after regasification, while in the period of 2023-2042, the total import volume will reach 29 million tonnes of LNG, which equals approx. 39 bcm of natural gas following regasification. It means that starting from 2023 every year PGNiG will purchase about 1.45 million tonnes of LNG, which equals approx. 1.95 bcm of natural gas after regasification.
LNG cargoes will be supplied on a delivered ex-ship basis to the President Lech Kaczyński LNG Terminal in Świnoujście with delivery provided by the seller.
“The agreed conditions, including the competitive price, are fully satisfactory for PGNiG. Thanks to this agreement we will have regular supplies of LNG from the USA starting as early as 2019. The share of LNG in our import portfolio is constantly increasing. The world’s liquefied natural gas market is rapidly growing and allows us to select the best offers in this area,” commented Piotr Woźniak, President of the Management Board of PGNiG SA.
“PGNiG is an important partner for Cheniere in a growing part of the European market, and we look forward to our long-term relationship providing PGNiG with clean, secure, and flexible LNG,” said Jack Fusco, President and CEO of Cheniere. “This contract supports our growth plans at Cheniere, continues our momentum of signing a diverse range of customers around the world, and reinforces our position as the leader in U.S. LNG,” he added.
LNG cargoes from Cheniere heading for Poland will depart from liquefaction facilities in Sabine Pass, Louisiana and Corpus Christi, Texas.
Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas (LNG) in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with expected aggregate nominal production capacity of 36 million tonnes per annum of LNG operating or under construction. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.
For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, filed with the Securities and Exchange Commission.
Polish Oil and Gas Company (PGNiG) is the leader of the Polish natural gas market. Listed on the Warsaw Stock Exchange the company’s core business includes exploration and production of natural gas and crude oil. Its key subsidiaries import, store, sell and distribute gaseous and liquid fuels. They also generate heat and electricity. PGNiG holds stake in about 30 companies including entities that provide professional geophysical, drilling and maintenance services. PGNiG holds exploration and production licenses on the Norwegian Continental Shelf and in Pakistan. The exploration and production activity in Norway is carried out by PGNiG Upstream Norway. While Munich-based PGNiG Supply & Trading is engaged in gas trading in Western Europe, also operating the LNG trading office in London.