Poland set to purchase large volume of American LNG

26 Aug 2019

PGNiG, Poland’s state-run natural gas company has revealed that the country is preparing to purchase a great quantity of US liquefied natural gas (LNG) from 2022 or 2023. 

PGNiG’s Vice-President of the Management Board for Trade, Maciej Woźniak, said that Poland is currently purchasing LNG from several countries. 

He told journalists on Friday: “Since beginning of operations, the Świnoujście LNG terminal [on the Baltic Sea] has received 67 tankers, including eight from the US. Starting 2022 or 2023, we are preparing to buy millions of tons of LNG from the US.”

Woźniak has indicated that the cost of pipelined natural gas from Russia will compete with American LNG, however industry experts say the latter will be costlier when expenses incurred from building specialized LNG terminals and the delivery tankers required are taken into account. 

This follows multiple efforts from US President Donald Trump to persuade European leaders to refrain from purchasing as much Russian gas, which he says is overly depended on. Moreover, the US Energy Department even renamed American LNG “freedom gas” to further advertise its product to the European and Asian markets.
 
PGiNG has recently signed agreements for the long-term supply of US LNG, with a 24-year deal with Texas-based Cheniere Energy set to deliver more than half a million tons of LNG from 2019 to 2022, and an annual 1.45 million tons starting 2023.