Gaz-System’s second Gdansk FSRU fails to secure sufficient capacity bookings

Poland’s Gaz-System said it had not received binding capacity orders at a “sufficient level” to proceed with the implementation of the second FSRU as part of the LNG import project in Gdansk Bay.

In July this year, Gaz-System launched a binding season for capacity bookings at the planned second FSRU with a capacity of 4.5 bcm in July this year.

Prior to that the firm completed a non-binding market test to asses the demand for additional regasification capacity and the interest in export of regasified LNG towards Slovakia, Lithuania, Denmark, Germany, as well as the Czech Republic and Ukraine.

Gaz-System said in a statement that the submission phase for long-term binding offers has ended on October 27.

The overall objective of the binding FSRU 2 open season procedure was to confirm the interest of market participants in increasing the regasification capacity of the FSRU terminal which would justify the implementation of the project.

However, the procedure “did not result in Gaz-System obtaining binding orders at a sufficient level to proceed with the implementation of the FSRU 2 project,” the firm said.

“Nevertheless, the interest in the regasification services declared by the participants imply that discussions may be continued in the future,” Gaz-System said.

The firm said the project will be the subject of further analysis.

In addition, the hydroengineering infrastructure that will be built as part of the FSRU 1 terminal project will also provide for the possibility of a second storage and regasification unit development if market demand for the FSRU 2 is confirmed in the future, Gaz-System said.

Focus on first FSRU

Currently, Gaz-System said it continues its efforts aimed at installing the first FSRU in the Gdansk area and designed to provide annual regasification capacity of up to 6.1 bcm.

Oslo-based BW LNG, a unit of Singapore’s BW, and Japan’s MOL have been shortlisted by Gaz-System to provide Poland’s first FSRU as part of the Gdansk LNG import project.

The provisions of the term sheet do not constitute binding obligations for the parties but set out the ‘roadmap’ for further negotiations of the charterparty and their essential content will be reflected in the final charter agreement, it said.

Gaz-System plans to conclude the deal with one of the two firms for a period of 15 years.

Poland’s Orlen has booked entire 6.1 bcm per year of regasification capacity at Gaz-System’s planned FSRU-based LNG import facility.

Orlen is already in charge for all of the supplies coming to Gaz System’s LNG import terminal in Swinoujscie, Poland’s first such facility, via PGNiG.

The firm completed in November last year its merger with Poland’s dominant gas firm, PGNiG.

Gaz-System plans to launch the FSRU-based project, backed by the EU, in early 2028.

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