Polish PGNiG signs 20-year contracts for liquefied natural gas shipments from the USA
Polish PGNiG has signed long-term contracts with two US companies for the supply of liquefied natural gas (LNG), the press service of the Polish company reported.
Two PGNiG reports say that the companies involved are Port Arthur LNG and Venture Global LNG, which are currently working on the construction of gas liquefaction terminals on the Gulf of Mexico coast in Texas and Louisiana. The terminals are expected to begin operation in 2022 and 2023. Under the contact, each company is expected to supply 2 million tons of liquefied gas annually for 20 years.
PGNiG Chairman Piotr Wozniak explained that this is the company’s strategy to replace gas supplies from Russia. He recalled that the contract with Gazprom would end in 2022. Also, the Polish company announced negotiations with other LNG suppliers.
In March, Ukrainian Naftogaz signed a contract with PGNiG on emergency gas supplies after Gazprom refused to resume gas supplies to Ukraine.
On February 28, the Arbitration Institute published its ruling on the gas dispute. It ruled that Gazprom must pay Naftogaz $4.63 billion for under-delivering gas according to the transit agreement.
According to both verdicts, Gazprom owes Naftogaz Ukraine a balance of roughly $2.6 billion.
On March 1, Gazprom refused to renew its gas supply to Ukraine. On March 2 it announced the start of procedures to nullify its contracts to transit gas through Ukraine and supply Ukraine with gas.