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Poland Signs Deals to Expand its LNG Terminal

General discussions of the systemic, societal and civilisational effects of depletion.

Poland Signs Deals to Expand its LNG Terminal

Unread postby Tom Kirkman » Mon 29 Jun 2020, 07:42:56

Expansion of oil & gas infrastructure continues. Because global demand for oil & gas continues to increase.

Poland Signs Deals to Expand its LNG Terminal

Poland has signed contracts worth 1.9 billion zlotys ($483 million) to expand its liquefied natural gas (LNG) terminal in Swinoujscie on the Baltic Sea to 8.3 billion cubic metres (bcm) by 2023 from 5 bcm now in response to increasing domestic demand.

An LNG unit of Poland’s gas infrastructure operator Gaz-System and the ports of Szczecin and Swinoujscie on Wednesday signed a contract with a consortium of Porr and TGE Gas Engineering on the expansion project.Poland sees the facility as a means of reducing the country’s reliance on Russian gas, which still accounts for more than half of its total consumption.

“The terminal gives us the flexibility of receiving gas from different parts of the world,” Piotr Naimski, a minister responsible for energy infrasructure, told a news conference.

Poland’s state-run gas company PGNiG does not plan to extend its long-term gas supply deal with Russia’s Gazprom beyond 2022 when it expires.

It plans to replace Russian gas with LNG supplies and pipeline gas from Norway via a planned gas link.

PGNiG expects gas consumption in Poland to increase in the coming years as gas gradually replaces coal, which the country uses to produce most of its electricity.
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Tom Kirkman
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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby coffeeguyzz » Mon 29 Jun 2020, 09:52:15

While I have not seen the posted price for Russian/Poland piped gas, the Turks and Ukrainians were supposedly paying in the $6/$7.50 per mmbtu for 10 year contracted piped natty from Gazprom.
As the TTF spot was under 3 bucks per the other day, it is understandable why the Poles are receptive to the flexibility of LNG ... along with the low cost.
The tolling structure for several US Gulf coast LNG operations range from $2 to ~$3 with transport and regas running under a buck per.

As US operators are approaching viabiliry at the astoundingly low price of $2/$2.50 per mmbtu, the histirical providers like Algeria, Qatar and Russia are being squeezed just like the Saudis are with their oil prices/revenue.

Volatile economic, political and social conditions be a'brewing.
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