US Cheniere Energy delivers first shipment of LNG to Poland

2019-07-26 21:38 update: 2019-08-01, 14:38
Photo PAP/Marcin Bielecki
Photo PAP/Marcin Bielecki
A ship with 165,000 cubic metres of LNG moored at the north Polish Swinoujscie gas terminal on Friday launching the implementation of a long term gas delivery contract signed in 2018 by Poland's PGNiG gas company and the US Cheniere Energy Inc.

Polish President Andrzej Duda in a letter read during a ceremony at the terminal, wrote that the first shipment of US LNG delivered as part of a long-term contract "is an important step towards ensuring Poland's energy security. It is a historic moment in Polish-US economic relations and a confirmation of close allied relations between the two countries."

Duda recalled that the PGNiG-Cheniere Energy Inc, 24-year contract, signed in November 2018, means that between 2019 and 2022 the total volume of gas imported from the US will reach 0.52 million tonnes of LNG, or about 0.7 billion cubic metres after regasification. However between the years 2023 and 2042 the total volume of gas imported will reach about 29 million tonnes (approx. 39 billion cubic metres after regasification) - meaning that from 2023, PGNiG will buy around 1.45 million tonnes of LNG a year (about 1.95 billion cubic metres). 

Prime Minister Mateusz Morawiecki in his letter wrote that the delivery of US LNG is yet another stage of building Poland's energy sovereignty. He added that independence and strong position regarding energy is one of the goals of his government.

"The LNG terminal in Swinoujscie, together with the (now being built) Baltic Pipe gas pipeline and the signed contracts for the delivery of gas from the US, allow (Poland) to become independent of deliveries from the eastern direction," wrote the PM. 

Meanwhile, leader of the ruling Law and Justice (PiS) party Jaroslaw Kaczynski noted in his letter that the "implementation of the contract is a milestone in giving Poland energy security through the diversification of suppliers and directions of imports. By becoming independent of Russian deliveries we are strengthening our political and economic sovereignty."

Kaczynski stressed that the price of US gas is almost one-third lower from prices of Russian gas imported by Poland. "In short, all this is becoming much safer and cheaper," wrote the PiS leader.         

Adam Davis of the US Embassy in Warsaw said that both the US and Poland understand that national security is closely tied with energy security and that is why both countries not only discuss energy security but also draw plans and invest in security and work to achieve such security. (PAP)

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