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|PGNiG to Terminate Natural Gas Deal with Gazprom|
|= Not to renew deal expiring 2022; it is now increasing LNG =|
Polish State-run firm Polish Gas and Oil (PGNiG) on 15th local time announced it has decided not to renew a natural gas purchase deal with Gazprom expiring 2022. The company, which has secured other sources by starting importing LNG in 2016, has finally successfully broken dependence on Russian natural gas.|
The current deal between the two companies included the term they have to submit a declaration whether to renew the deal beyond 2022 by the end of 2019, three years prior to the expiration date. PGNiG had met all demand in the country by procuring pipeline gas from Gazprom.
Meanwhile, it completed the country's first LNG import terminal in Swinoujscie in 2016 and has been shifting its sources to LNG.
As a result, the share of pipeline gas from Russia and the western areas dropped to 66.8% in 2018. The share between January and September 2019 further dropped to 58%, while that of LNG grew to 23%.
PGNiG is purchasing LNG from Qatargas under a long-term SPA deal and commenced a deal to purchase LNG from Cheniere Energy this July.
It has also signed deals with Sempra Energy and Venture Global. The two companies are planning to start LNG projects in the US between 2022 and 2023. These deals will replace the deal with Gazprom and PGNiG's share of LNG will further rise.
|last modified : Mon 25 Nov, 2019 [10:37]|