Polish Oil and Gas Company (PGNiG) and the U.S.' Cheniere Marketing International signed a 24-year agreement for U.S. LNG supplies, PGNiG said late Thursday.
According to the announcement, starting from 2023 PGNiG will purchase about 1.45 million tonnes of LNG on an annual basis, equivalent to approx.1.95 billion cubic meters (bcm) of natural gas after regasification.
The seller will deliver LNG cargoes via ship to the President Lech Kaczynski LNG Terminal in Swinoujscie in northwest Poland.
"The agreed conditions, including the competitive price, are fully satisfactory for PGNiG. Thanks to this agreement we will have regular supplies of LNG from the U.S. starting as early as 2019," Piotr Wozniak, president of PGNiG said.
He added that the share of LNG in the company's import portfolio is constantly increasing while the global LNG market is also expanding allowing the company to select the best offers in the region.
"PGNiG is an important partner for Cheniere in a growing part of the European market, and we look forward to our long-term relationship providing PGNiG with clean, secure, and flexible LNG," said Jack Fusco, Cheniere president and CEO.
"This contract supports our growth plans at Cheniere, continues our momentum of signing a diverse range of customers around the world, and reinforces our position as the leader in the U.S. LNG," he added.
LNG cargoes from Cheniere heading for Poland will depart from liquefaction facilities in the Sabine Pass, Louisiana and Corpus Christi, Texas.
By Murat Temizer and Mehmet Yilmaz