Polish LNG expansion takes step forward

Gaz System’s unit Polskie LNG has now a clear path to build the third tank at its import facility in Swinoujscie following approval by local authorities.

The LNG terminal operator said the West Pomerania Province issued a licence to build the tank on Thursday.

The new 180,000 cbm tank is part of the expansion project that will boost the current regasification capacity of the first and only LNG terminal in Poland by 50 percent.

Moreover, Polskie LNG has last year picked a consortium consisting of a Polish unit of Austrian PORR Group and Germany-based TGE Gas Engineering, part of China’s CIMC, to perform the expansion works.

Polskie LNG says the expansion is carried out as a “design and build” project, meaning the contractor, before obtaining administrative approvals, conducts design works, selects subcontractors, and prepares to start construction works.

The deal with the consortium has a price tag of about 1.9 billion zloty ($512 million) and includes both onshore and offshore works. The duo will build a second jetty, regas facilities, and the tank.

Furthermore, the expansion consists of two phases with the first already underway. This phase includes building two regasification units and Polskie LNG expects works to complete by the end of this year.

The second phase, targeted for completion in 2023, will see the addition of the second tank and the new jetty.

Once complete, the terminal will have a total regasification capacity of about 8.3 bcm per year but it will also feature an LNG-to-rail installation extending the range of its services.

In addition, the second jetty will be capable of loading and unloading vessels as well as handling LNG bunkering ships.

Poland’s LNG imports on the rise

Poland has been boosting imports of LNG for years via its only import facility in Swinoujscie as it looks to reduce pipeline gas imports but also coal usage.

PGNiG, the country’s dominant gas firm, said recently it imported 3.76 billion cubic meters of LNG into Poland during the last year.

Compared to 3.43 bcm imported during 2019, this represents a rise of 9.6 percent. The 2019 imports also marked a rise of 25 percent year-on-year.

PGNiG is in charge of all the supplies coming to the import terminal operated by Gaz-System’s unit Polskie LNG. The facility recently received its 115th delivery since 2016.

The Polish gas firm mostly imports volumes under its long-term deal with Qatargas and Cheniere but also the spot market.

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