Polskie LNG, which owns and operates the President Lech Kaczyński LNG Terminal in Świnoujście in northwest Poland, has announced that 100% of its capacity is now reserved.
The news follows the signing of an agreement with Polish oil and gas company PGNiG on 29 May for all of the regasification services at the terminal. Earlier this year, Polskie LNG had launched an open season procedure to allow gas companies to submit offers for the services it offers at the terminal, and with the deal with PGNiG, this is now complete.
The agreement with PGNiG will see Polskie LNG provide a transitional regasification service from 2022-2023, for 6.2bn m3/y, and a basic regasification service from 2024-2038, amounting to 8.3bn m3/y, as well as additional services. Most of the capacity will come from a forthcoming expansion at the Świnoujście LNG Terminal.
PGNiG says that the decision to reserve additional capacity at the terminal is due to the development of its activity on the liquefied gas market, which increased by a quarter over the past year compared to the previous year, to 3.43bn m3/y. LNG now makes up more than 23% of the company’s import portfolio, and it expects this to increase further due to increasing volumes of LNG imports under log-term contracts with US suppliers.
The Świnoujście LNG terminal expansion will take place in two stages, with the first stage due for completion in 2021, and the second in 2023. Polskie LNG will install additional submerged combustion vapourisers to increase the technical capacity of the terminal, and construct a third to increase the process storage flexibility. In collaboration with the Szczecin and Świnoujście Seaports Authority, Polskie LNG will also build a new jetty to allow methane carriers to load and unload, transshipment and loading of LNG bunkering units and bunkering service. The company will also launch an LNG transshipment facility for rail tankers, allowing it to extend the scope of its services.
‘The terminal in Świnoujście is one of the most heavily used facilities of this type in Europe. The results of this year’s Open Season procedure confirm that this will be the case also after the expansion,’ says Tomasz Stępień, President of the Management Board of Polskie LNG.
Jacek Sasin, Polish Deputy Prime Minister and Minister of State Assets welcomed the news, saying that Świnoujście LNG terminal is of ‘strategic importance’ to Poland and ‘has a significant impact on building independence of Poland and the neighbour countries from gas supplies from the East.’
‘For PGNiG, liquefied natural gas is not only a solution to diversify imports and ensure energy security of the country and its customers, LNG plays a very important role in PGNiG’s business plans and it contributes to building a strong position of the company on the domestic as well as foreign markets. In one month’s time the Świnoujście terminal will receive the hundredth liquefied natural gas cargo. This reflects the dynamics of PGNiG’s development of its business in this area. This would not have been possible without the successful cooperation with Polskie LNG,’ says Jerzy Kwieciński, President of the Management Board of PGNiG.