Polish Oil and Gas Company Group (PGNiG) signed a five-year contract with the UK’s Centrica LNG Company Limited. The LNG supply will be sourced from Cheniere Energy’s Sabine Pass LNG Terminal, USA (ticker: LNG).

The contract is on a DES delivery basis and will begin in 2018. Up to nine cargoes will be delivered during the term of contract to the President Lech Kaczynski LNG Terminal in Swinoujscie, where PGNiG recently booked additional regasification capacity.

After long-term contracts had previously led the way, deal signals a new level of LNG market activity

CEO and President of the Management Board of PGNiG Piotr Wozniak said, “Preceded by the long-term contract for LNG deliveries from Qatar and several spot deliveries in 2017, this agreement shows that we are stepping into a new level of global LNG market activity.

”This five-year agreement for American LNG deliveries is based on gas market conditions. We look forward to working with Centrica as a partner to continue to provide diversified supply into Poland.”

This is the first medium-term LNG agreement signed by PGNiG’s London branch office, the London office is dedicated to global LNG trading. In October 2017, PGNiG also took part in a binding open season procedure for capacity bookings from the planned 10 bcm/y pipeline corridor (Baltic Pipe), which will connect the Norwegian Continental Shelf with Poland in 2022.

Source: en.energinet.dk

“This agreement is the first of its kind in PGNiG’s planned portfolio of medium-term LNG agreements. 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,” added CEO Wozniak.

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