Polish state-controlled gas company PGNiG has signed a 20-year gas supply deal with US company Venture Global LNG to receive about 2.7bn cubic metres (cm) of gas annually, PGNiG said on October 17. The deal is part of a strategy pursued by PGNiG to build a portfolio of LNG supply deals.
Poland has been working to increase diversification of its gas supplies to reduce dependency on imports from Russia, which Warsaw considers a hostile country. The agreements are in the free-on-board formula, which means the buyer has full control of the shipment as soon as it is loaded on to a ship.
That will allow the Polish company to resell LNG to clients in markets worldwide. PGNiG will receive LNG from Venture Global LNG’s two terminals in Louisiana that are set to begin operations in 2022-2023.