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American LNG 20-30% cheaper than Russian gas: Polish official

06.09.2019 15:30
Liquefied natural gas contracted by Polish state-run company PGNiG in June is 20-30% cheaper than supplies Poland buys from Russian giant Gazprom under a long-term deal, a government official said in Warsaw on Friday.
A gas burner. Image by Magnascan from Pixabay
A gas burner. Image by Magnascan from Pixabay pixabay.com/Pixabay License

Poland's PGNiG in June signed an agreement with US company Venture Global LNG to buy 2.5 million tonnes of liquefied natural gas per year as part of efforts to diversify supplies.

Until 2022, Poland is bound by a long-term contract with Russia’s state-owned producer Gazprom.

“This is a so-called take-or-pay contract, so we have to pay for the gas whether we take it or not, and the price is absolutely uncompetitive,” Piotr Naimski, the Polish government's pointman on strategic energy infrastructure, was quoted as saying by Reuters on Friday.

“At the moment the contracts signed by PGNiG regarding LNG supplies are 20-30% more advantageous than the Russian one,” Naimski added, according to Reuters.

In February, Naimski said Poland would stop buying Russian gas after the contract with Gazprom expires in 2022.

(jh/gs)

Source: Reuters