Polish state-run incumbent gas supplier PGNiG has signed a side agreement to its existing Qatargas long-term contract, whereby the latter will increase deliveries to PGNiG to 2mn metric tons per year (2.7 billion cubic meters) of LNG with effect from January 2018 until June 2034. However, details regarding the pricing of additional supplies were not furnished. In 2009, Qatargas had entered into a sale and purchase agreement (SPA) with PGNiG to supply 1mn tonnes per annum of LNG for 20 years. The LNG will be supplied from Qatar Liquefied Gas Co, a joint venture between Qatar Petroleum, ConocoPhillips and Mitsui & Co, and will be delivered by Q-Flex LNG vessels to the President Lech Kaczynski LNG Terminal in Swinoujscie, Poland. Piotr Woźniak, Chief Executive Officer and President of the PGNiG Management Board, said: “PGNiG is firmly committed to expanding its LNG portfolio and our active presence in the global LNG market. I’m very pleased that Qatargas and PGNiG have been able to achieve an agreement which contributes to the realization of the long-term goals of both companies and supports the implementation of our strategy to diversify natural gas supplies to Central and Eastern Europe.” Maciej Woźniak, Executive Vice-President of the PGNiG Management Board, added: “This agreement is the next meaningful step in deepening our close partnership with Qatargas, the world’s biggest LNG Company, and reaffirms Qatargas’ commitment to supporting the development of an LNG hub in Poland. This agreement will also contribute to building the Company's value for shareholders.” Saad Sherida Al-Kaabi, Qatar Petroleum President and Chief Executive Officer, and Chairman of Qatargas Board of Directors, said: “We are very pleased that we have signed this agreement, which marks another milestone for us in Qatar as we continue to meet the requirements of our customers worldwide. I would like to take this opportunity to thank PGNiG for their trust in Qatargas”.
Qatargas to double LNG supplies to Poland
4 days ago