PGNiG: another quarter of stepped-up LNG deliveries

05.10.2022 PGNiG: another quarter of stepped-up LNG deliveries

Polskie Górnictwo Naftowe i Gazownictwo keeps up the fast pace of LNG deliveries to Poland. Between July and September, the Company took delivery of 14 LNG cargoes at the President Lech Kaczyński LNG Terminal in Świnoujscie. Three additional cargoes were brought in by the PGNiG Group through the terminal in Klaipėda, Lithuania.

"The President Lech Kaczyński LNG Terminal in Świnoujście, which has been in operation for several years now, and the Baltic Pipe, which came on stream a few days ago, are the pillars of Poland's energy security that allow PGNiG to effectively diversify its natural gas imports. Thanks to the growing number of incoming LNG cargoes and the effective use of the regularly expanded transmission infrastructure, we are able to ensure stable supplies to customers in the coming heating season, as well as in the years to come," stressed Iwona Waksmundzka-Olejniczak, President of the PGNiG S.A.Management Board.

PGNiG currently uses two LNG terminals in the region: the Lech Kaczyński LNG Terminal in Świnoujście and the terminal in Klaipėda, Lithuania. The last delivery in the third quarter of this year, made in late September, came from Qatar. The LNG tanker Al Huwaila carried 120 mcm of gas (after regasification) to the Świnoujście terminal under the contract with Qatargas.

However, the largest number of shipments made in the third quarter came from the United States. Most of the gas from that market was purchased under spot contracts. All in all, in the third quarter of 2022 PGNiG received approximately 1.4 bcm of natural gas (after regasification) at the Świnoujście Terminal.

LNG imported through the terminal in Klaipėda supplements the deliveries shipped to Świnoujście. PGNiG began using the Klaipėda terminal in May 2022 and to date has received there six cargoes with a total volume of more than 0.5 bcm (after regasification). In the third quarter, the PGNiG Group received three shipments through the Lithuanian terminal.

At the end of September, PGNiG obtained a regasification capacity allocation in Klaipėda for 2023-2032. It will enable the Company to take delivery of LNG cargoes with a volume of more than 0.5 bcm (after regasification) annually. Gas imported in this way can be transmitted to Poland through the Poland-Lithuania pipeline brought on stream in May this year.

The stepping up of LNG supplies is an important part of PGNiG's diversification efforts and making Poland independent of gas supplies from Russia. In total, since the beginning of the year the PGNiG Group has taken delivery of 46 cargoes with a volume of approximately 51.9 TWh (about 4.5 bcm after regasification), of which 40 cargos went to Świnoujście. This demonstrates the size of the step-up efforts: a year earlier in the same period PGNiG took delivery of 26 cargoes with a volume of 32 TWh, which means that in the first nine months of 2022 alone the Company increased the volume of deliveries by more than 60%.

PGNiG intends to maintain the high rate of LNG deliveries in the fourth quarter as well. The first October shipment to the Świnoujście terminal will arrive from Qatar. It will be carried by the Tembek tanker, scheduled to enter the terminal on Tuesday, October 4th. The vessel will deliver approximately 120 mcm of LNG (after regasification). It will be the 41st delivery to the terminal this year and the 189th since the terminal was put in operation.