PGNiG planning more spot, medium-term LNG purchases

23 June 2017 17:02 Source:ICIS

Poland’s gas incumbent PGNiG plans to purchase more LNG, both on a spot basis and in the medium-term, the company’s vice chairman, Maciej Wozniak, told ICIS on Friday.

“We are looking into favourable offers [to purchase] another LNG spot cargo by the end of this summer, between August and September. This is on top of our long-term contract with Qatargas,” Wozniak told ICIS in an interview on Friday.

PGNiG has a long-term supply contract with Qatari producer Qatargas. Under a separate agreement, from January 2018 it will double imports from Qatargas to 2 million tonnes per annum (mtpa), equivalent to 2.8 billion cubic metres (bcm) per year.

The company has already been active on the spot market. The Clean Ocean vessel from US company Cheniere arrived at Poland’s Swinoujscie LNG terminal earlier in June. PGNiG has also procured a second spot cargo for delivery in July, which will be delivered from Qatargas. This is on top of the monthly vessels which carry Qatari LNG under its long-term contract.

Medium-term LNG strategy

Wozniak said the company, which has recently opened an LNG trading desk in London, is also working on a strategy for medium-term LNG deliveries, covering the next three to 10 years.

PGNiG is so far the only company to have booked capacity at the Polish LNG terminal.

“We see the need to completely use our booked regasification capacity at the Polish terminal. We have booked 65% [of its total capacity] and we want to fully utilize it, with long-term, spot and also medium-term deliveries,” he said.

“We have not signed any contract yet, so I cannot say who we are currently in talks with, but I would like to add that there are more and more interesting offers out there [to purchase LNG]. It is a ‘buyer’s market’ right now and we want to use it to its full potential,” Wozniak said.

He added that purchased cargoes could be delivered outside Poland, but did not comment on any potential destinations.

By Karolina Zagrodna