PGNiG, Venture Global finalize US LNG supply deal

Poland’s PGNiG has finalized a recently announced deal under which it will buy more liquefied natural gas from US liquefaction plant developer Venture Global LNG.

Under the deal, Poland’s dominant gas firm and LNG importer will purchase another 2 million mt on a free on board basis for 20 years.

As a result, PGNiG’s contracted volume from Venture Global LNG will increase to 5.5 million mt or 7.4 bcm of gas per year.

Venture Global’s Calcasieu Pass and Plaquemines LNG export facilities will supply the volumes while the first shipments should begin in 2023.

The new deal amends the original contract concluded back in 2018. PGNiG and Venture Global signed the amendments on Thursday during a ceremony at the Warsaw Stock Exchange, according to a joint statement.

“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,” Paweł Majewski, president of PGNiG’s management board, said.

He added that this is particularly important considering that natural gas would be a bridge fuel in the process of energy transition of the Polish economy.

“At the same time, access to American LNG gives us the opportunity to develop trade of this fuel on the global market – for this purpose we will charter LNG carriers to transport liquefied natural gas,” he said.

To remind, PGNiG has recently signed a charter deal with Norway’s Knutsen for two new 174,000-cbm vessels, boosting the total to four carriers.

South Korea’s Hyundai Heavy Industries has already started building the first LNG carrier in this batch.

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