The Polish Oil and Gas Co. (PGNiG) will purchase an additional 1.5 million tonnes per year (mtpa) of LNG from Venture Global LNG under an agreement signed in Washington on June 12.
The signing ceremony was a part of the state visit of Polish President Andrzej Duda, and was attended by U.S. Energy Secretary Rick Perry and Poland’s Secretary of State for Strategic Energy Infrastructure Piotr Naimski.
Under the agreement, the volume of LNG from the Plaquemines, La., terminal will increase from 1.0 to 2.5 million tonnes per year (from 1.35 to 3.38 billion cubic meters of natural gas after regasification). Deliveries will commence on the commercial operation date, expected in 2023. This new amendment raises PGNiG’s total commitment with Venture Global LNG projects to 3.5 MTPA (4.73 bcm), sourced from Calcasieu Pass (1 MTPA) and Plaquemines LNG (2.5 MTPA).
“Poland and the United States have a strong and strategic alliance and friendship which is fortified by a shared commitment to energy security and an understanding that true energy security is achieved through energy diversity,” said Perry. “Today’s announcement of the significant expansion of the existing LNG partnership between Venture Global and PGNiG further solidifies that goal. Under President Trump’s leadership, our two nations have launched the U.S.-Poland Strategic Energy Dialogue which fosters and supports partnerships just like this. We look forward to even more in the months and years to come.”
For Poland, a key element is securing supply following expiration of its agreement to purchase LNG from Russia.
“We are increasing our LNG portfolio in terms of volumes, which we will receive from the USA after 2022, i.e., after the expiration of the Yamal contract,” said Piotr Woźniak, president of the PGNiG management board.
“From 2022 and 2023, we will receive a total of 3.5 million tonnes of LNG per year from Venture Global LNG’s export facilities (both in the state of Louisiana), which equals approximately 4.73 bcm of natural gas per year following regasification,” said Maciej Woźniak, vice president of PGNiG management board for trade. “American LNG is becoming more competitive, which is confirmed by consecutive quarters of increased imports by Europe.”
Stratas Advisors assesses impact of Barry and expects a 68 Bcf build this week.
However, bears are watching Iranian actions carefully as tensions loom.
For the week ahead we expect moderate gains to continue. Brent will likely average close to $67/bbl.