PGNiG and Venture Global LNG announce SPAs
Published by Will Owen,
For a 20 year term, the Polish Oil and Gas Company (PGNiG) will receive LNG from the US Venture Global LNG facility for domestic supply or for resale.
Under the agreements, PGNiG will purchase LNG on a free on board (FOB) basis starting from the commercial operation date of the Venture Global Calcasieu Pass LNG export facility, currently expected in 2022, and the commercial operation date of the Venture Global Plaquemines LNG export facility, expected in 2023.
The binding contracts were signed between Polish Oil and Gas Company (PGNiG) and two subsidiaries of Venture Global LNG – Venture Global Calcasieu Pass, LLC and Venture Global Plaquemines LNG, LLC. Both contracts are the result of an agreement concluded in June 2018 with Venture Global LNG.
“[The] recently signed contracts are a milestone towards building PGNiG's position in the global [LNG] market,” said Piotr Wozniak, President of the PGNiG Management Board. “Thanks to the FOB formula, we will be able to decide, independently and based on our needs at a given time, whether the purchased LNG load should be directed to Poland or be used for further trading through our London office,” added Wozniak.
“The contract conditions in the USA are very attractive. The LNG price is based on the American Henry Hub index along with liquefaction costs,” stated Maciej Wozniak, Vice-President of the PGNiG Management Board for Trade. “These are the first long-term contracts for purchase of LNG from the US announced in Central Europe,” he underscored.
Mike Sabel and Bob Pender, co-CEOs of Venture Global LNG, jointly announced: “We are honoured to become a partner of both Poland and of PGNiG, one of Europe’s most important international oil and gas companies. We are greatly looking forward to developing a long-term supply relationship with PGNiG, who will be joining our existing, high quality partners: Shell, Edison SpA, Galp, BP and Repsol.”
The new contracts will provide a total of 2 million tpy of LNG, which is approximately 2.7 billion m³ of natural gas after regasification, and this equals – depending on the vessel capacity – over 25 cargoes a year. For a term of 20 years, PGNiG will purchase from each of the companies 1 million tpy of LNG every year on a FOB basis, where the seller will deliver LNG to a tanker ship at the loading port and the purchaser will freely dispose of the load, including deciding on the cargo destination.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/17102018/pgnig-and-venture-global-lng-announce-spas/
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