News
21.10.2015 PGNiG and Qatargas sign a new supplementary agreement to the LNG supplies contract
Polskie Górnictwo Naftowe i Gazownictwo SA and Qatar Liquefied Gas Company Ltd have signed a new supplementary agreement to the LNG supplies contract of June 29th 2009. Pursuant to the agreement, PGNiG and Qatargas have changed the terms on which the long-term contract will be performed in the first six months of 2016.
As in 2015, in the first half of 2016 Qatargas will place the volumes defined under the long-term contract on other markets, leveraging its position of a leading global LNG producer and supplier. PGNiG will cover any difference between the LNG price specified in the long-term contract and the market price obtained by Qatargas. Should the price be lower than PGNiG finds satisfactory, any unsold LNG supplies will be shifted to later years of the long-term contract.
“We maintain regular contact with our Qatar partner and discuss any issues related to the performance of our obligations as they arise. Execution of the new supplementary agreement proves our flexible approach to doing business and attests to the good relations between our two companies,” said Mariusz Zawisza, President of the PGNiG Management Board.
The supplementary agreement also specifies the terms on which PGNiG S.A. and Qatargas will agree LNG supplies in the first half of 2016, if need be, once the Świnoujście terminal achieves full operational functionality.
As announced by the project owner, Polskie LNG, acceptance tests of all the critical systems at the LNG Terminal in Świnoujście that are necessary to receive the first delivery of liquefied natural gas have been completed. Currently, the project is at the start-up stage and the first vessel with technical LNG is to arrive at the port of Świnoujście between December 11th and December 17th 2015. Commercial deliveries are scheduled to start in the first half of 2016.
PGNiG reports that it has thoroughly analysed the available projections of global LNG prices and domestic natural gas prices for the first half of 2016. In the Management Board’s opinion, the supplementary agreement may enable PGNiG to improve its H1 2016 result on trading in natural gas secured under the long-term contract relative to the original scenario.
Dorota Gajewska
Press Officer, PGNiG SA
