Qatar will double the supply of liquefied natural gas (LNG) to Poland to 2mn tonnes per annum as part of efforts to strengthen the bilateral economic and trade relations between the two countries.
Qatargas has signed a side agreement to the existing sale and purchase agreement (SPA) with Polish Oil and Gas Company (PGNiG). The new agreement will come into effect on January 1, 2018 and run until June 2034.
"We are very pleased that we have signed this agreement, which marks another milestone for us in Qatar as we continue to meet the requirements of our customers worldwide," said Saad Sherida al-Kaabi, Qatargas chairman and Qatar Petroleum president and chief executive.
Under the terms of the agreement, Qatargas will increase the volume of LNG currently supplied to PGNiG to 2mn. However, details regarding the pricing of additional supplies were not furnished.
The LNG will be supplied from Qatargas 3 - a joint venture among Qatar Petroleum, ConocoPhillips and Mitsui - and delivered on board Q-Flex LNG vessels to the President Lech Kaczynski LNG Terminal in Swinoujscie, Poland.
In 2009, Qatargas had entered into a SPA with PGNiG to supply 1mn tonnes per annum of LNG for 20 years with the first delivery reaching Poland's first LNG terminal on the Baltic Sea on December 11, 2015. The LNG receiving terminal not only helps fuel sustainable economic growth and development throughout Poland, but also Eastern Europe and across all nations along the Baltic Sea basin.
Highlighting that Qatargas' direction statement clearly articulates its commitment to building strong, long-term relationships with customers, chief executive Sheikh Khalid bin Khalifa al-Thani said, "Today, Qatargas looks forward to the next phase in our long-term relationship with PGNiG, and to the prospect of building an even stronger relationship with PGNiG as we increase our deliveries of LNG to Poland.”
Piotr Wo?niak, president and chief executive of PGNiG, said the company is firmly committed to expanding its LNG portfolio and its presence in the global LNG market.
"I’m very pleased that Qatargas and PGNiG have been able to achieve an agreement which contributes to the realisation of the long-term goals of both companies and supports the implementation of our strategy to diversify natural gas supplies to Central and Eastern Europe,” he said.
Maciej Wo?niak, executive vice-president of PGNiG, said this agreement is the next meaningful step in deepening its close partnership with Qatargas, the world’s biggest LNG entity, and reaffirms Qatargas’ commitment to supporting the development of an LNG hub in Poland.
The ?winouj?cie LNG Terminal, which became the 17th Qatargas provides deliveries, consists of a new 3-km long breakwater, an unloading jetty with one berth that will be able to unload methane carriers with the capacity ranging from 120,000 cubic metres (conventional vessels) to 217,000 cubic metres (Q-Flex size vessels); two LNG storage cryogenic tanks (each with the capacity of 160,000 cubic metres); regasification facilities and an 85km pipeline joining the receiving terminal with the Polish gas grid.