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Poland Signs Deals to Expand its LNG Terminal

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Poland Signs Deals to Expand its LNG Terminal

Unread postby Tom Kirkman » Mon 29 Jun 2020, 08:42:56

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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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby coffeeguyzz » Mon 29 Jun 2020, 10:52:15

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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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby ROCKMAN » Sun 05 Jul 2020, 16:47:19

Due to the high infrastructure costs and local economic dependency NG is and always has been a long term play sometimes aided by short term opportunities.
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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby coffeeguyzz » Sun 05 Jul 2020, 17:50:35

Rockman
Good to hear from you.
Regarding infrastructure costs, if you check out the double yoked buoy system off Boston - Northeast Gateway Port - you may be surprised at just how cheap - and fast - it can be to set up an FSRU compatible LNG import terminal.
Bangladesh is installing more as they plan to ramp up their industrial base and will have Combined Cycle Gas Plants to provide cheap electricity.

The Port Kembla terminal - standard ship berthing - will cost about $150 million US to construct, and the Crib Point and Newcastle projects should follow shortly.

Of more relevance, perhaps, is the agreement that Golar has just joined with entrepreneurial Galileo Technologies out of Argentina.
Galileo is already making big strides in the Marcellus with their micro and small scale hardware and the combination of Golar's bringing in massive quantites of LNG with Galileo's proven track record of processing/storing/shipping LNG on small scale ensures widespread, economical distribution.
The Barcarena project in northern Brazil is set to be a springboard to distribute natty to interior mining operations, fertilizer plants, and autonomous, small scale power plants.

The technologies emerging around $2/$3 HH natgas are literally changing the world.
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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby rockdoc123 » Mon 06 Jul 2020, 00:02:01

it's interesting that Poland is still talking about more LNG. Almost a decade ago I remember them planning a new regas facility on the Baltic just so they wouldn't be at the mercy of seasonal fluctuations in pricing out of Russia. At that time they believed the shale gas possibilities in the Ordovician and Silurian would save the day but the rocks just didn't cooperate.
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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby Plantagenet » Mon 06 Jul 2020, 03:02:13

As part of its effort to decrease dependence on Russia, Poland signed two contracts with US LNG producers in 2019. Quite likely some of this US LNG will move through the newly expanded Polish LNG terminal.

FT-Poland-US-LNG

How interesting that at the exact same time Germany is building the huge Nord Stream pipeline system to bring in MORE Russian NG, Poland is building LNG terminals and signing deals to decrease Russian NG dependence and replace it with US LNG and Norwegian NG and gas from anywhere except Russia.

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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby dissident » Tue 07 Jul 2020, 11:41:34

rockdoc123 wrote:it's interesting that Poland is still talking about more LNG. Almost a decade ago I remember them planning a new regas facility on the Baltic just so they wouldn't be at the mercy of seasonal fluctuations in pricing out of Russia. At that time they believed the shale gas possibilities in the Ordovician and Silurian would save the day but the rocks just didn't cooperate.


Don't make up stories, liar. The seasonal fluctuations you bleat about are set by the contract formula that Poland agreed to in 1996. They are linked to oil prices and they were mild compared to spot pricing fluctuations.

For now these fools think that dumping level prices on the EU LNG market will last forever. Reality is going to bite them in the a**.
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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby dissident » Tue 07 Jul 2020, 11:45:23

https://www.indexmundi.com/commodities/ ... months=240

The above shows 20 years of gas prices from Gazprom for exports to Europe. You can clearly see the correlation with oil prices. Also no evidence of any political seasonal fluctuations as claimed by the liar above.
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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby EnergyUnlimited » Tue 07 Jul 2020, 13:43:49

Currently we have absolutely rabid anti-Russian government in Poland.
This is likely to cause immense problems in the future as Russia is only getting stronger and West in general and America in particular weaker.
It is likely to make our diplomatic situation exceedingly difficult in coming years, also due to improving relations of Germans with Russians (for those who don't know - Poland is between).
But Poland has now historic record of making disastrous decisions and we tend to be the one who comes on the party when all vodka and beer is over and everyone is drunk and vomiting.
This time it won't be different.
Many actions of our government are looking like deliberate sabotage of nation's prospects.
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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby radon1 » Tue 07 Jul 2020, 18:15:04

Russia is not getting stronger, by any metric. The next few years may turn out to be quite entertaining. In any event, having a spare terminal should be helpful, even if as a backup option.
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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby EnergyUnlimited » Wed 08 Jul 2020, 10:17:08

radon1 wrote:Russia is not getting stronger, by any metric. The next few years may turn out to be quite entertaining. In any event, having a spare terminal should be helpful, even if as a backup option.

Yes but here politicians want to resign from Russian gas ENTIRELY.
Due to geographic location of Poland it is insane or/and sabotage.
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Re: Poland Signs Deals to Expand its LNG Terminal

Unread postby radon1 » Wed 08 Jul 2020, 14:51:10

EnergyUnlimited wrote:Yes but here politicians want to resign from Russian gas ENTIRELY.
Due to geographic location of Poland it is insane or/and sabotage.


This is utter stupidity, from a citizen's point view. They (the politicians) are either dumb, or have skin in the game, or both.
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