Polskie Górnictwo Naftowe i Gazownictwo S A : PGNiG to purchase more LNG from Venture Global LNG

27.07.2021 PGNiG to purchase more LNG from Venture Global LNG

PGNiG signed agreements with Venture Global Calcasieu Pass, LLC and Venture Global Plaquemines, LLC to purchase another 2 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) for 20 years. As a result, the volume of LNG contracted from Venture Global LNG by PGNiG is to increase to 5,5 Mtpa.

'LNG plays a vital role in PGNiG's strategy. It is a key component of our supply portfolio diversification and the plan to reinforce the energy security of our customers. Moreover, based on LNG, we plan to develop our commercial activity in the global trading market. Expanding our cooperation with Venture Global LNG fits in with both of these goals', said Paweł Majewski, the Chief Commercial Officer of PGNiG SA.

The agreements signed by PGNiG and Venture Global affiliates is another step to increase the volumes contracted in 2018 and 2019. Instead of 1 Mtpa, PGNiG intends to purchase 1,5 Mtpa from the under-construction Calcasieu Pass facility, while the Plaquemines contracted volume is to be increased from 2,5 Mtpa to 4 Mtpa. When both PGNiG / Venture Global sales and purchase agreements (SPAs) are amended, PGNiG will be purchasing from Venture Global 5,5 Mtpa of LNG (approx. 7,4 bcm of gas annually) for 20 years.

The SPAs signed with Venture Global LNG subsidiaries are on a free on board basis (FOB) which means that the seller will deliver LNG to an LNG carrier at the loading port and the buyer can freely dispose of the load. Both liquefaction facilities i.e. Calcasieu Pass and Plauemines, are located in Louisiana. The first one to start is Calcasieu Pass with the commercial deliveries expected in early 2023.