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Polish PGNiG: less gas from Russia, LNG imports on the rise

Polish PGNiG: less gas from Russia, LNG imports on the rise

Warsaw, January 29 - Neftegaz.RU. According to PGNiG, diversification of Poland’s gas supply sources and directions is progressing. The share of gas imports from Russia dropped to ca. 60% in 2019, from ca. 67% in 2018, as opposite to LNG, whose share in total imports increased to ca. 23%, from 20% a year earlier.

“We can clearly see LNG volumes brought into Poland via the President Lech Kaczyński LNG Terminal in Świnoujście are rising by the year. The Q1 of 2020 will see peak activity in terms of LNG deliveries. By the end of March alone we are to receive 10 cargoes coming in from different directions,” said Jerzy Kwieciński, CEO of PGNIG. “With respect to gas supplies from Russia we are bound by the ‘take or pay’ clause in the Yamal contract, which means that we have to collect from Gazprom at least 8.7 billion cu m of gas per year. This will continue until the end of 2022, when the Yamal contract expires,” Kwieciński added.

In 2019, PGNiG brought 3.43 billion cu m of lLNG into Poland, over one-fourth more than a year earlier. LNG imports from the US, Qatar and Norway increased by about 0.7 billion cu m (after regasification) on 2018. Imports from Russia amounted to 8.95 billion cu m in 2019, compared with 9.04 billion cu m a year earlier.

Consequently, gas from Russia accounted for 60.2% of PGNiG’s total imports in 2019, which means a 6.6pp drop, with LNG imports having risen 3pp, to 23.1%. The remaining share of imports was gas sourced from countries west and south of Poland. This marks a clear shift towards diversification of gas supplies for Polish consumers. Back in 2016, Russian gas represented close to 89% of total imports, but the following years saw supplies from Russia fall steadily, with a simultaneous growth in LNG imports. PGNiG’s total gas imports reached 14.85 billion cu m in 2019, about 1.32 billion cu m more than the year before.

In 2019, PGNiG received 31 LNG deliveries to Poland, compared with 23 a year earlier. The number of cargoes purchased under short-term, or spot, contracts increased from 4 to 10 during that period. The 1st shipment of US LNG has arrived in Poland under a long-term contract with Cheniere Energy, with the annual volumes of deliveries under the contract set to rise in the coming years. The contracts signed for US LNG will add some 9.3 billion cu m (after regasification) of gas per year to PGNiG’s portfolio in 2024–2042. From 2020 onwards, annual LNG imports from Qatar will amount to approximately 2.7 billion cu m (after regasification).

In addition to expanding its LNG portfolio, Polskie Górnictwo Naftowe i Gazownictwo is making preparations to start supplying Polish customers with gas from the Norwegian Continental Shelf, which is to be carried via the Baltic Pipe through the North Sea, Denmark and the Baltic Sea, starting in late 2022.

To read the article in Russian.


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