Polish chems firms invited to 'group-buy' LNG from new terminal

04 October 2012 17:18  [Source: ICIS news]

LONDON (ICIS)--Polish chemical companies are to be encouraged to form purchase consortiums for liquefied natural gas (LNG) that should be available from a major new €550m ($705m) terminal on Poland' Baltic Sea coast due to go into operation in 2014, the company building the facility, Polskie LNG, said on Thursday.

Approximately 65% of the terminal's planned output of 2.5bn cubic metres (cbm)/year of Qatari gas would be bought by Polish state gas monopoly PGNiG, but the remainder could be sold at competitive prices achieved by group-buying on the spot market carried out by chemical industry players, added Polskie LNG, a subsidiary of state-owned gas network operator Gaz-System.

Oil and petrochemical group PKN Orlen and Polish chemical group Zaklady Azoty Tarnow (ZAT) were among chemical producers that had so far expressed an interest in purchasing LNG from the terminal in Swinousjscie, it said.

However, a source at Polish fertilizer producer Zaklady Chemiczne Police (ZChP), which is controlled by ZAT, has expressed concerns that gas from the terminal may prove unattractive to fertilizer producers due to low methane content.

ZChP is located in Police, a town slightly south of Swinousjscie.

Gas flowing from the terminal is to be distributed to buyers via a planned north-south pipeline that could see some deliveries made as far away as Austria and Slovakia.

A grant of €211m from the EU Infrastructure and Environment Operational Program and a €55m grant from the EU European Energy Programme for Recovery have been approved to cover 45% of the cost of constructing the terminal.

($1 = €0.78)


By: Will Conroy
+44 20 8652 3214



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