Venture Global LNG and PGNiG (Polish Oil and Gas Company) finalized an agreement under which PGNiG will purchase an additional 2 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from Venture Global for 20 years.
Cargoes will be supplied from Venture Global's Calcasieu Pass LNG and Plaquemines LNG export facilities. The documents were signed during a ceremony at the Warsaw Stock Exchange.
"Venture Global is proud to expand our existing partnership with PGNiG to provide a clean and reliable supply of American LNG to Poland. Since 2018, our two companies have significantly increased our cooperation, nearly tripling the volume of LNG Venture Global will export to PGNiG. Poland will lower its carbon footprint and diversify its energy mix by incorporating more American natural gas into its portfolio. 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," commented Mike Sabel, Chief Executive Officer of Venture Global LNG.
"The import of LNG allows PGNiG to diversify sources and routes of supply of natural gas. This way we can provide Polish customers with energy security – constant and uninterrupted gas deliveries. This is particularly important considering that natural gas will be a bridge fuel in the process of energy transition of the Polish economy. At the same time, access to American LNG gives us opportunity to develop trade of this fuel on the global market – for this purpose we will charter LNG carriers to transport liquefied natural gas. In this respect, we value cooperation with Venture Global LNG, as it brings us the possibility of achieving our strategic goals," commented Paweł Majewski, the President of the PGNiG Management Board.
Today's announcement amends the existing Sales and Purchase Agreements signed by the companies in 2018, increasing the volume of LNG purchased from Calcasieu Pass LNG to 1.5 MTPA and the volume from Plaquemines LNG to 4 MTPA. This brings the total volume of LNG PGNiG has committed to purchase from Venture Global facilities to 5.5 MTPA, for 20 years on a free-on-board basis (FOB).
