Poland Signed a Major Contract with the U.S. for the LNG Supplies

The Polish oil and gas company PGNiG says that American gas will be 20 percent cheaper than Russian gas. The contract is valid for 20 years. On Wednesday, October 17, the Polish state-owned oil and gas company PGNiG announced that it had concluded an unprecedentedly profitable contract with the U.S. for the supply of liquefied natural gas (LNG), which would reduce Poland’s dependence on fuel from Russia. According to the president of the company Piotr Woźniak, Poland will buy American gas 20 per cent cheaper than Russian. “There is no comparison in terms of prices and delivery times with our Eastern partner. I can only say that it will be about 20 percent cheaper than delivery from the East, Wozniak said, noting that Warsaw may soon announce the conclusion of another contract for the supply of LNG. He added that Norway and Qatarareother possible gas suppliers for Poland. Poland’s prime minister Morawiecki, commenting on the conclusion of a contract with the United States, said that “today we can realize our efforts to strengthen the sovereignty, security and competitiveness of our gas sector”. U.S. ambassador to Poland Georgette Mosbacher told reporters that the contract was signed as part of the campaign by the presidential administration Donald Trump to transform the United States into the world's largest LNG exporter. Under the terms of the contract, two subsidiaries of the US group Venture Global LNG will supply Poland with 2 million tons of liquefied gas, the volume of which after regasification will be about 2.7 billion cubic meters. The 20-year deal the cost of which has not been disclosed will enter into force in 2022, when the contract between PGNiG and Russian Gazprom on the annual supply of 10 billion cubic meters of gas to Poland expires. At present, Russian gas covers around two-thirds of Poland’s gas demand. Source: LRT