PGNiG reaches LNG settlement with Qatargas

Photo: Glowimages

The original wording of the contract stipulated for 1.5 billion cubic metres of Liquified Natural Gas (LNG) deliveries annually, starting from the second half of 2014.

However, Poland's LNG terminal in Swinoujscie, originally scheduled to be completed in mid 2014. is still under construction. It is now expected to be launched by the end of the first half of 2015.

The settlement states that Qatargas will market the LNG meant to be sold to PGNiG in 2015 in other countries.

PGNiG will cover any difference in price, if necessary. Nevertheless, with the settlement, the Polish company will avoid paying contract fines.

The companies will also be able to agree on the delivery of LNG from Qatargas later in 2015, when the Swinoujscie terminal is already in operation, depending on Poland's energy needs.

“I think that the signing of the settlement is favourable both for PGNiG and for Qatargas. It is evidence of a continued good cooperation between the companies,” the Polish company's CEO Mariusz Zawisza was quoted as saying in its statement.

Robert Zajdler, an expert from the Sobieski Institute, agrees that the settlement is good news.

“So far it was believed that renegotiating the Qatar contract would mean losses for PGNiG,” he told ISBnews.

“It turned out that is does not have to be so. The signed agreement allows the Polish company to limit costs resulting from the lack of ability to receive LNG after 1 January 2015.” (kw)

Source: PGNiG, ISBnews