Poland signs 20-year gas deal with U.S.

Poland signs 20-year gas deal with U.S.

Poland’s state-run energy company  Polskie Gornictwo Naftowe i Gazownictwo (PGNiG) has struck a 20-year deal to buy liquified natural gas (LNG) from the U.S., as the country pushes to reduce its dependence on imports of Russian gas.

PGNiG said that the contracts signed with subsidiaries of US group Venture Global LNG would provide it with 2m tonnes of LNG per year, or 2.7bn cubic meters of natural gas after re-gasification. The deliveries are due to start from 2022, the FT reported.

The terms of the contracts between PNG and Venture Global were not disclosed, but PGNiG’s CEO Piotr Wozniak said that they were better than the terms on which Poland was currently buying gas from Russia. "We are buying 20% cheaper than we have to pay to our eastern supplier," he said.

Poland’s prime minister Mateusz Morawiecki said that the agreements would boost both the "sovereignty" and the "competitiveness" of Poland’s energy sector.

Poland’s energy ministry Krzysztof Tchorzewski said the deal would help Poland diversify its gas supplies. "In the Polish context, this gas is a civilisational good," he said.