Poland´s PGNiG will purchase more natural gas from American Venture Global LNG

Warsaw, September 2 - Neftegaz.RU. PGNiG signed amendments to agreements with American companies Venture Global Calcasieu Pass and Venture Global Plaquemines to purchase another 2 million tonnes per annum (MTPA) of LNG for 20 years.

As a result, the volume of LNG contracted from Venture Global LNG by PGNiG will increase up to 5,5 MTPA, which equals approximately 7.4 bcm following regasification.
Jacek Sasin, Polish Deputy PM, said:

• The contracts signed today are another important step on the way to full energy security of our country
• The American gas which will be supplied by a reliable and predictable partner, together with the fuel that will flow to Poland via the Baltic Pipe gas pipeline from Norway, will allow us to become independent from supplies from the eastern direction
• Diversifying the sources of gas imports and the possibility of choice, as well as the freedom to trade in the purchased fuel, increases Poland's energy independence

The amended agreements are contracts based on the FOB formula, which means that the purchaser, i.e. PGNiG, is responsible for the loading and transportation of the purchased gas.

LNG will be collected from 2 liquefaction facilities on the Gulf of Mexico – Calcasieu Pass and Plaquemines. The 1st supplies from Venture Global LNG are planned for the beginning of 2023.

Paweł Majewski, President of PGNiG, commented:

• The import of LNG allows PGNiG to diversify sources and routes of supply of natural gas
• This way we can provide Polish customers with energy security – constant and uninterrupted gas deliveries

Mike Sabel, CEO of Venture Global LNG, noted:

• Since 2018, our 2 companies have significantly increased our cooperation, nearly tripling the volume of LNG Venture Global will export to PGNiG
• Poland will lower its carbon footprint and diversify its energy mix by incorporating more American natural gas into its portfolio

The amendments relate to agreements signed by PGNiG and Venture Global LNG companies in 2018.
They determine the increase in the sales volume of LNG.

In case of the sales and purchase agreement with Venture Global Calcasieu Pass, the amendment provides for an increase in the volume of LNG purchased by PGNiG by 0.5 MTPA to 1.5 MTPA.

While the amendment to the agreement with Venture Global Plaquemines, increases the volume of supplies of LNG by 1.5 MTPA to 4.0 MTPA.

Thanks to the amendments the total volume of LNG that PGNiG will purchase from both Venture Global LNG companies for the period of 20 years will increase to a total of 5.5 MTPA, i.e. to approx. 7.4 bcm after regasification.