Polish gas firm PGNiG expects to sign short and mid term contracts for liquefied natural gas by mid 2018 to take advantage of an expected supply glut, Vice-president Maciej Wozniak has told Reuters.
U.S. President Donald Trump’s visit to Warsaw last month, which focused on security and energy, has boosted expectations of more U.S. LNG supplies for Poland.
Poland opened its LNG terminal at Swinoujscie on the Baltic Sea last year to reduce its reliance on Russian gas supplies.
“For a few months we have been in talks with our partners on further LNG supplies to Poland. Of course we are talking not only to American contractors,” Wozniak, PGNiG’s vice-president responsible for gas trade, said in an interview.
PGNiG’s sole LNG supply deal so far is with Qatargas, which in March agreed to double deliveries to Poland to 2 million tonnes (2.9 bcm) per year until 2034.
Swinoujscie’s annual capacity is currently 5 billion cubic metres (bcm) which is to be expanded to 7.5 bcm.
“We are also planning mid and short term contracts,” Wozniak told Reuters, referring to deals for up to two years and others for around seven years.
“We’d like to enter the second half of 2018 with a supply portfolio constructed in this way,” he said.
PGNiG has also become active in buying LNG on the spot market. Earlier this year it received LNG cargoes from Norway and the United States. One or two more LNG spot purchases are still possible this year, Wozniak said.
“We see more and more clearly that when it comes to LNG we are dealing with a buyer’s market. According to forecasts this could last until 2020 and we want to benefit from it,” Wozniak said.