Qatargas and PGNiG today jointly announced the signing of a Heads of Agreement (“HoA”) for LNG supply from Qatar to Poland.
Under the terms of the HoA Qatargas will supply one million tonnes per annum (“mtpa”) of liquefied natural gas (“LNG”) to POLSKIE GORNICTWO NAFTOWE I GAZOWNICTWO S.A. (PGNIG) under a 20 year long term agreement.
The LNG will be delivered into a new LNG receiving terminal in Poland, to start in 2014. The terminal will be capable of receiving the cargoes using the new Q-Flex class of vessels. PGNiG intends to use the LNG to supply mainly commercial power companies and users.
Mr. Faisal M. Al Suwaidi, Chairman and Chief Executive Officer of Qatargas Operating Company Ltd. said; “LNG has a key role to play in helping governments around the world improve the diversity of their energy supplies. Qatargas is pleased with this exciting development which breaks new ground in reaching agreement to supply LNG to meet the growing demand for energy in Poland.”
Mr Michal Szubski, Chairman and Chief Executive Officer of PGNiG said: “LNG supplies is one of the keys to a diversified gas portfolio in Poland. It has also a key role in developing cooperation in other fields of value chain. The HoA opens a new field in cooperation between Qatar and Poland.”
Qatargas is currently under going a major expansion program. The company is constructing four new LNG processing trains, which will see an increase of LNG production from 10 mtpa today to 42 mtpa by the end of the decade.
