State-run Polish gas company PGNiG will receive its first spot delivery of LNG from Norway's Statoil ASA (NYSE: STO) on June 25, taking advantage of cheap and abundant global supply, it said on May 24, .
Prices for spot LNG have collapsed, global demand is faltering and a wave of competing new supply brings the opportunity to pick up relatively cheap gas compared with that bought through long-term deals.
The cargo from Statoil will count as Poland's first taste of spot gas. PGNiG has a long-term deal to import LNG from Qatar, paying one of the highest prices in the world, industry sources have said.
The shipment of about 140,000 cubic meters (Mcm) of LNG -- equivalent to 84 MMcm once restored to its gaseous state -- will be delivered to Poland's Baltic Sea LNG terminal in Swinoujscie, which is expected to start commercial operations next month.
Poland consumes about 16 Bcm of gas per year. The LNG supplies to the Baltic Sea terminal are part of Poland's plan to reduce its reliance on gas supplies from Russia's Gazprom. PGNiG also wants to revive a project to build a gas pipeline to Norway.
"PGNiG completed the analysis of LNG spot cargo offers of deliveries to Swinoujscie in June and July this year. It has been decided that the first cargo will be purchased from Norway's Statoil, which has submitted the best offer," PGNiG said in a statement.
The cargo will be delivered using the Arctic Princess vessel from Norway's Snohvit LNG export plant, PGNiG added.
During the week of May 16, trade sources told Reuters that PGNiG had purchased at least one cargo of LNG from Statoil.
PGNiG also said that it will receive the first shipment of LNG from Qatargas on June 17 as part of the long-term contract signed in 2009. A shipment of 206 Mcm of LNG will be supplied by the al-Neuman vessel. Qatar's next delivery is expected in mid-July.
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