Norwegian Corridor 24 November, 2017 10:00 am   
COMMENTS: Piotr Naimski

The North-South gas pipeline will increase the security of Poland and the region

LNG terminal in Świnoujście is part of a wider, comprehensive strategy to provide alternative access to gas sources for Poland – Piotr Naimski said, a Government Plenipotentiary for Strategic Energy Infrastructure at the 3rd National Conference “LNG Regasification Stations in the Poviats and Municipalities as the Country’s Leverage of Economic Development”. The media patron of the event was

During the speech, he emphasized Poland’s consistent implementation of the plan to build gas transport capabilities on the North-South axis. – For many people, companies or governments, this is a revolutionary approach, because the existing gas transmission networks have so far been on the East-West axis – Minister Naimski said. He added that this is a strategy, an important part of which is the LNG port and the Baltic Pipe gas pipeline.

As indicated by the government plenipotentiary, both of these elements will cause that in 2022 the import of gas for Poland will be possible from completely different sources than the existing ones.

Minister Naimski also talked about increasing the functionality of the Polish LNG port. – The capabilities of the terminal are more extensive than it seems. It is not just about LNG supplies, but there are other functions that it can and will provide – he said. In this context, he highlighted the EU regulations that make ships that sail across the sea switch to LNG gas. – It is already happening. Hence the bunkering of ships. This is one of the functions that are being designed and developed in Świnoujście – convinced the Government Plenipotentiary for Strategic Energy Infrastructure.

He also mentioned that the globalizing LNG market could contribute to the decline in the price of this raw material. – As of 1 January 2018, the so-called second Quatar contract between the PNGiG and Qatargas would come into effect. These two contracts fill ca. 60% terminal capacity. We have a vision, the prospect that the globalizing LNG market would cause a decrease in the price of LNG. LNG producers in the United States are preparing to enter the global market. In the United States, export licenses were granted for 180 billion cubic meters in liquid form. – The discussion that is taking place between potential US suppliers and consumers in Europe comes down to what price formula would be the benchmark in the US or in Europe. If American entities come to the conclusion that without thinking about what is acceptable in Europe, i.e. the benchmark will be the European benchmark, then that gas will flow. LNG has to compete in Europe with gas, which traditionally comes from pipelines, especially from the Norwegian Sea, because it is a healthy competition – Naimski said.

In his view, when the Baltic Pipe is launched, price competition will begin in the Polish market. – This will lead to the price being dictated in an administrative manner – he said.

During the speech he also mentioned the possibility of using LNG to gasify Poland. – Polish Gas Company operates an active gasification strategy in a country where gas has not reached so far. There are areas in Poland where the gas transmission network has not reached, e.g. Podlasie. In these places PSG proposes the construction of small regasification stations, which are supplied with tankers. In addition, local gas networks are being developed – Minister Namiski said. He added that with sufficient number of recipients in these areas, there would be sufficient grounds for Gaz-System to build a transmission network.