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PGNiG to supply gas to the LG Electronics factory

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LNG Industry,

Under the agreement with LG Electronics, PGNiG Obrót Detaliczny will build a regasification station and deliver nearly 19 000 t of LNG for five years. The fuel will supply the LG production plant located in the EURO-PARK KOBIERZYCE industrial park managed by the Industrial Development Agency near Wroclaw, Poland.

“We are convinced that LNG in the coming years will become one of the foundations of the dynamic development of industry in Poland. The use of this fuel not only guarantees efficient production, but also a positive ecological effect. Business is looking ever more favourably at this universal and cheap solution. This contract is a great success of our Group, one of the largest in our history”, said Jerzy Kwiecinski, President of the Management Board of PGNiG SA.

The investment of the Korean company LG Chem is the largest factory of this type in Europe, and the recipients of the batteries for electric cars produced there are to be leading automotive concerns. Its importance for the economy was already emphasised in 2017 by the then deputy prime minister, and now the Prime Minister Mateusz Morawiecki, when handing a permit to operate a Korean company. In March this year In turn, LG Chem Wroclaw Energy received a loan of €480 million to continue construction from the European Investment Bank.

“The co-operation and assistance with the implemented investment to date confirm our belief that it is worth developing business in Poland. PGNiG Retail Trade has demonstrated understanding of our needs and flexibility, which allowed us to prepare this joint project in the best possible way. Thank you for your support and we look forward to equally fruitful co-operation at the next planned stages of the investment,” summed up Jong Won Park, President of LG Electronics Wroclaw.

The LNG fuel will ultimately be supplied to the regasification station, which PGNiG will build at the LG production plant located in the EURO-PARK KOBIERZYCE industrial park managed by the Industrial Development Agency in Biskupice Podgórne (Lower Silesian Voivodeship). According to the plan, the station is to be launched in early December 2020. Until then, LNG deliveries will be made to a temporary mobile installation.

“In addition to the undoubted advantages of LNG, this contract is also the result of our sales effectiveness. Suffice it to say that the volume of supplies provided for LG is more than twice as high as in the case of our previous largest contract,” emphasised Henryk Mucha, President of the Management Board of PGNiG Retail Turnover.

“Under the contract with LG Electronics Wroclaw, PGNiG Retail Trade will deliver a total of nearly 19 000 t of LNG by 2025. This is the largest LNG sales contract in the history of the Company,” emphasised Marcin Szczudlo, Vice President PGNiG Retail Turnover responsible for the CNG/LNG area.

“Starting a mobile regasification installation now, which will temporarily fully replace the target infrastructure, is a response to the needs of our client. Thanks to this, we can immediately start supplying fuel necessary to power production processes. We are glad that ecological natural gas is gaining increasing popularity in Poland, because its use contributes to the improvement of air quality,” adds Marcin Szczudlo.

LNG is one of the cleanest fuels available on the market. The recipient after regasification receives a fuel which, in the combustion process, ensures the lowest carbon dioxide emission among industrial fuels. The project is implemented with the company Gas-Trading SA.

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