Polish Oil & Gas Co. (PGNiG) struck a deal for a spot cargo from Cheniere Energy’s Sabine Pass liquefied natural gas (LNG) terminal in Louisiana. The cargo, expected to arrive during the first half of June, would be northern Europe’s first from the United States.
For PGNiG it will also be the second spot delivery following a cargo from Norway last June.
“This is a historic moment for PGNiG,” said Piotr Woźniak, president of the PGNiG board. “North America is becoming the next region for acquiring this strategic commodity after Middle East and Norway. We consistently fulfill our strategy of diversifying gas deliveries to Poland.
“A future delivery from the USA proves that Poland can become a gateway to Central and Eastern Europe for American LNG.”
The transaction was overseen by the PGNiG trading office in London. The cargo is destined for the President Lech Kaczyński LNG Terminal in Świnoujście.
“Delivering this cargo from Cheniere to Poland demonstrates the continued demand for U.S. LNG and for Cheniere’s full-service model that includes the delivery of LNG directly to customers,” said Cheniere CEO Jack Fusco.
PGNiG’s business includes exploration and production of natural gas and crude oil. Subsidiaries import, store, sell and distributes gaseous and liquid fuels. They also generate heat and electricity.
The Świnoujście terminal received its first commissioning cargo, from Qatargas, in late 2015, Poland’s first shipment of gas from the Middle East. Poland has a 20-year agreement for supply from Qatar, Poland’s Ministry of Treasury said at the time. The first commercial cargo, also from Qatar, arrived last June.
“The LNG terminal is to be one of the most important component of the Polish energy security system,” the ministry said then. “With new gas pipelines, interconnectors, virtual and reverse on the Yamal Gas Pipeline, as well as with below-grade stores and own extraction, it will strengthen gas independence of Poland.”
Last December major Japanese LNG buyer JERA Co. Inc. announced its first purchase of LNG from the Lower 48 states, also from Cheniere.