Poland expands US LNG commitments
US-based Venture Global LNG said September 2 it reached a long-term agreement to supply Poland with volumes of the super-cooled form of natural gas.
The agreement with Poland's state-owned PGNiG, calls for the supply of 2mn metric tons/year of LNG from Venture's planned Calcasieu Pass and Plaquemines export terminals in Louisiana. The deal amends an existing sales and purchase agreement signed in 2018. Combined with the terms outlined in the latest deal, PGNiG has committed to purchasing 5.5mn mt/yr from Venture Global for 20 years on a free-on-board basis.
Mike Sabel, the CEO at Venture Global, said the agreement was a boon for Polish energy security.
“Poland will lower its carbon footprint and diversify its energy mix by incorporating more American natural gas into its portfolio,” he said. “Pivoting towards cleaner natural gas from the United States will not only increase Poland's energy security but also decrease its carbon emissions, and Venture Global looks forward to supporting our partner PGNiG in these efforts for years to come."
European energy security is a concern for Western powers wary of Russia’s grip over energy supplies, particularly natural gas. Those concerns have escalated with the near-completion of the Nord Stream 2 gas pipeline through the Baltic Sea to Germany.
Calcasieu Pass will export 10mn mt/yr of LNG once deliveries begin next year. Construction on the 20mn mt/yr Plaquemines terminal is slated to start this quarter, and exports are expected to begin in 2023.