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Polish gas giant secures long-term LNG supplies from US

16.05.2022 20:00
Polish state gas company PGNiG on Monday signed a preliminary agreement to import 3 million metric tons of liquefied natural gas (LNG) per year from the United States. 
Przemysław Wacławski, deputy CEO of Polands state gas company PGNiG, and Dan Brouillette, President of Sempra Infrastructure, sign a preliminary agreement on the delivery of 3 million metric tons of US LNG to Poland a year, starting in 2027.
Przemysław Wacławski, deputy CEO of Poland's state gas company PGNiG, and Dan Brouillette, President of Sempra Infrastructure, sign a preliminary agreement on the delivery of 3 million metric tons of US LNG to Poland a year, starting in 2027. PAP/Marcin Bielecki

Under the long-term deal, PGNiG is set to buy LNG from US firm Sempra Infrastructure over the next two decades, Polish state news agency PAP reported.

This new contract would satisfy 20 percent of Poland’s annual demand for natural gas, officials said.

PGNiG Deputy CEO Przemysław Wacławski told a news conference on Monday that his company had been importing American LNG since 2017 and "recent world events bear out the correctness of this strategy.”

PGNiG determined to buy more LNG from US

“We are determined to expand our cooperation with American suppliers of LNG,” Wacławski said

“We’ve long seen LNG as an opportunity to diversify sources of gas supply to Poland and make the country energy secure, and right from the start we’ve looked to the US as a supplier,” he added.

Helping 'provide energy security to Poland'

Meanwhile, Sempra Infrastructure’s President Dan Brouillette hailed Poland as a “change leader” in the current geopolitical situation marred by Russia’s invasion of Ukraine.

He said: “Today’s agreement underscores our commitment to help provide energy security to Poland and our global partners through long-term LNG sales.”

Brouillette added: “Our relationship with PGNiG is core to this commitment and we are excited to continue working closely with them to advance more reliable, secure and increasingly clean energy solutions.” 

Sempra has agreed to supply PGNiG with LNG from two of its terminals, in Louisiana and Texas, starting in 2027, officials told reporters.    

Monday’s announcement came just two days after PGNiG received 65,000 metric tons of LNG from another US company, Venture Global LNG, whom it also sees as Poland’s “major supplier” in the future, the company said. 

Full independence from Russian gas

LNG is a key resource for Poland's energy security as the country seeks full independence from the Russian gas giant, Gazprom, the Reuters news agency reported.

Gazprom stopped supplies to Poland in April, after the government in Warsaw refused to switch to payment in roubles, news outlets reported at the time.

Monday was day 82 of Russia's invasion of Ukraine.

(pm/gs)

Source: IAR, PAP, pgnig.pl, Reuters