Polish Oil and Gas Company Group (PGNiG) has signed a new five-year contract with Centrica for delivery of liquefied natural gas (LNG) from the US.
The financial details of the deal were not divulged by the company.
Under the contract, up to nine cargoes will be delivered to the President Lech Kaczynski LNG Terminal in Swinoujscie in Poland starting next year.
Most of the LNG procured under the deal will be sourced from the Sabine Pass LNG Terminal in the US.
PGNiG Management Board president and CEO Piotr Woźniak 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.
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By GlobalData“We look forward to working with Centrica as a partner to continue to provide diversified supply into Poland.”
The contract builds upon PGNiG’s strategy of securing reliable and diversified gas supplies for Poland.
It also represents the first mid-term contract for LNG from the US in Central and Eastern Europe.
Woźniak added: “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.”
Last month, PGNiG took part in a binding Open Season procedure for capacity bookings from the planned 10 billion cubic metres a year pipeline corridor (Baltic Pipe), which is expected to connect Poland with the Norwegian Continental Shelf in 2022.
