LNG terminal deal close?

The LNG terminal, which once open will allow Poland to import gas from countries such as Qatar, was initially meant to be operational by June 2014.

However this deadline was not achieved and the Italian construction firm in charge of the project, Saipem, asked for additional payment for completing the work. The investing company Polish LNG refused to make this payment.

“Poland will not pay a single złoty more for the construction of the LNG terminal in Świnoujście as a result of a deal that will be signed with the builder of the gas port, the Saipem company,” the inside source told the PAP news agency.

According to the unnamed source, under the agreement not only will the Polish investor avoid making any more financial contributions, but Saipem will also commit itself to opening the terminal this year and will pay a fine if this is not done.

“I still have to check the proposals contained in the annex [deal] and then, after signing, I will inform about the specifics of the deal,” Treasury Minister Andrzej Czerwiński commented last week.

The details of the deal are secret until signed.

The company Saipem says that the LNG terminal is currently 98 percent complete, and some sources have claimed that the construction phase should finish in September.

Once operational the terminal will allow Poland to import up to five billion cubic metres of LNG per year, covering around a third of the country’s demand. This will be one of the largest LNG ports in Central, Eastern and Northern Europe.

If necessary capacity could be boosted to 7.5 billion cubic metres. A feasibility study was commissioned in April to look into the prospect of expanding the port in future.

The LNG terminal is aimed to decrease Poland's dependency on gas supplies from the east, including Russia. (sl/jh)

Source: PAP