Poland Signed a Contract for LNG Supply From the USA
OREANDA-NEWS Polish PGNiG and American Venture Global LNG signed a contract for 20 years for the supply of two million tons of liquefied natural gas annually. Two million tons is about 25 tankers a year, and after regasification — 2.7 billion cubic meters of blue fuel.
The head of the Polish company Peter Vozhnyak said that the supply will take place according to the formula Free on Board (FOB). This means that the Polish company becomes the owner of the raw material at the time of shipment and will specify the port of destination.
The cost has not been disclosed. According to the Leader, Poland will receive American LNG at a price of almost 30% cheaper than natural gas from Russia now.
In September, Donald Trump promised Warsaw to deliver "a huge amount of LNG at a good price."
The Prime Minister of Poland Mateusz Morawiecki commented on the deal. He said that liquefied natural gas from the United States" will strengthen the sovereignty of the country.
According to Alexey Grivach, Deputy General Director for gas projects of the national energy security Fund, this contract will help Warsaw to create the appearance of working on alternative sources of Russian gas.
"We can judge the competitiveness of American LNG in the European market by the statistics of its supplies to European terminals. Volumes, despite the growth of production, are negligible. And Poland, which most of all shouted about the American LNG, for two years of operation of its terminal bought as much as one gas carrier," Alexey Grivach told.
Moscow remains the main supplier of gas to Warsaw. Over the past six months, Poland has increased imports from Russia by 0.4 billion cubic meters. The contract signed in 1996 between PGNiG and Gazprom provides for the supply of up to ten billion cubic meters of gas per year with a minimum contracted volume of 8.7 billion cubic meters. The contract is valid until 2022.