22.06.2009 Conditions of the LNG delivery agreement have been accepted
The Management Board and Supervisory Board of PGNiG SA have accepted the liquefied natural gas LNG delivery conditions from Qatar. The conclusion of the agreement between PGNiG SA and Qatargas Operating Company Ltd. is planned by the end of the month. PGNiG S.A. will make an announcement as part of current and interim information released in accordance with the Ordinance of the Minister of Finance dated 19 February 2009.
The resolution adopted by the Management Board of PGNiG SA is an extraordinarily important step towards the diversification of natural gas deliveries to Poland. It is confirmation, that the Strategy adopted last year, one pillar of which pertains to obtaining natural gas in the form of LNG, is being consistently carried out.
The Agreement pertains to the delivery of 1 million tons of LNG annually (approx. 1.5 billion m3) for a period of 20 years from 2014. The contracted amount of liquefied natural gas is a sufficient amount to secure the commencement of the construction of the LNG terminal in Świnoujście. The remaining amounts of liquefied natural gas will be obtained by PGNiG SA from deliveries obtained by medium and short term contracts.
The period for commencement of deliveries is strictly correlated with the schedule of the LNG terminal investment by OGP Gaz-System SA and its subsidiary Polskie LNG. The delivery of the terminal is planned for 2014. The commencement of deliveries is also planned in this period.
The deliveries will be carried out Ex-Ship. The delivery location is the terminal in Świnoujście. The deliveries will be carried out by Qatargas using Q-flex vessels, that is, allowing for the transportation of approx 217,000 m3 of natural gas at a time.
Joanna Zakrzewska
Spokesperson for PGNiG SA
