Poland receives LNG terminal bids

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Feb. 11 -- Poland’s state-owned Polskie LNG received bids from three consortia to build a LNG terminal at Swinoujscie in the northwest part of the country.

Members of the consortia include Italy's Saipem SPA with Poland's PBG; Italy's Tecnimont SPA with Poland's Polimex-Mostostal SA and France's Sofregaz SA; and South Korea's Daewoo Engineering & Construction Co. with Korea Gas Corp.

Polskie LNG will negotiate with each of the consortia until April. In May, the terminal operator plans to finalize the engineering, procurement, and construction contract, enabling building to begin in this year’s second half.

The Swinoujscie terminal, estimated to cost €600-700 million, will have a capacity of 5 billion cu m/year of gas, which may be expanded to 7.5 billion cu m/year, depending on demand growth in Poland.

If utilized at full capacity in 2014, the terminal would supply 30% of Poland's total gas demand, which is forecast to rise to 16.4 billion cu m by 2014, according to analyst BMI.

Polskie LNG Pres. Zbigniew Rapciak said the proposed LNG terminal will begin operations on June 30, 2014, an adjustment of previous forecasts that had put the start of operations at yearend 2013 or early 2014.

The delayed start date would not be a problem for Poland's state-owned PGNiG, according to a Polskie LNG spokesperson, who added that the first carrier from Qatar is not due to moor at Swinoujscie until July 2014.

Last April, PGNiG signed a 20-year agreement with Qatargas to receive 1.5 billion cu m/year of LNG, and the Swinoujscie terminal will have a 315-m dock capable of berthing Q-Flex LNG tankers, Qatar’s largest (OGJ Online, Apr. 16, 2009).

A total of six Q-flex LNG carriers are expected to make 11-12 deliveries of up to 217,000 cu m each year to Swinoujscie, but the Poles still plan to diversify their suppliers so that the Qatari contract can be supplemented with medium-term or spot LNG contracts.

Meanwhile, according to state media, Poland’s Council of Ministers is thought likely to approve a conditional agreement reached by PGNiG and OAO Gazprom. The biggest concern involves extension of the import contract by 15 years to 2037 and increasing the gas supply by 2.3 billion cu m.

However, industry experts say Poland will need extra gas from Russia this year and in the near future, at least until the opening of the Swinoujscie LNG terminal.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Inpex starts development drilling at Ichthys field

02/04/2015

Inpex Corp. has started development drilling in Ichthys gas-condensate field in the Browse basin, about 200 km offshore Western Australia.

BG’s 2015 budget ‘significantly lower than 2014’

02/03/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is “significantly lower than 2014” due to “a lower oil...

Live Oak LNG to build Calcasieu Ship Channel liquefaction, export site

02/03/2015 Live Oak LNG LLC, a subsidiary of Parallax Energy LLC, Houston, will invest $2 billion to develop a 5-million tonne/year liquefaction plant and LNG...

Woodside gets NEB approval for British Columbia LNG exports

02/02/2015 Woodside Energy Holdings Pty. Ltd. has received approval from Canada’s National Energy Board on its application for a 25-year natural gas export li...

E&Y: Oil-price collapse to boost global M&A activity in 2015

02/02/2015 The oil-price collapse will facilitate increased global transaction activity in 2015 as companies revise and implement new strategies, according to...

Shell cancels Arrow LNG project

01/30/2015

Royal Dutch Shell PLC has abandoned its plans for what would have been a fourth coal seam gas-LNG project at Gladstone in Queensland.

DOE could meet 45-day LNG export decision deadline, Senate panel told

01/29/2015 The US Department of Energy would have no trouble meeting a 45-day deadline to reach a national interest determination for proposed LNG export faci...

Douglas Channel LNG moves toward 2018 startup

01/29/2015 Exmar NV, EDF Trading, and AIJVLP, a joint venture of AltaGas Ltd. and Idemitsu Kosan Co. Ltd., have taken full ownership of the 550,000 tonne/year...

Mitsui charters two more LNG ships for Cameron export project

01/29/2015 Mitsui & Co., Ltd., Tokyo, reports contracts for chartering two new ships to transport LNG to Japan from the Cameron LNG export project in Loui...
White Papers

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected