U.S. LNG delivery to Poland cheaper than gas from Russia and German market

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An interview with Maciej Woźniak, PGNiG’s Vice-President of the Management Board for Trade. He explains the benefits that the LNG terminal in Świnoujście offers his company.

BiznesAlert.pl: You are importing more and more LNG thanks to the terminal in Świnoujście. What are the benefits of this trade? How to compare them with the Yamal contract that operates on completely different terms? 

Maciej Woźniak: The import works on the basis of spot contracts, that are part of our strategy for the current gas year. It is updated on an ongoing basis and such deliveries are the most cost-effective for us. We import gas from places where it is the cheapest.

Meanwhile the Russian gas sold on the German energy exchange is still competitive… 

Our analyses show that even in comparison to import via gas pipelines from the West, the prices of liquefied gas from individual deliveries are attractive.

Las summer you received a spot delivery from Norway. This year spot deliveries are also taking place in the summer. Is this a coincidence?

This is mostly because of the situation on the global market. Obviously gas consumption by industrial entities and individual clients decreases in the summer in Europe. We use that time to fill up our storage facilities. The gas sector never rests.

What is the relation between LNG deliveries to Świnoujście and export to Ukraine?

We are increasing our presence on the Ukrainian market, which obviously increases the demand for gas imports to Świnoujście. In the first quarter of the year, gas exports increased by 11% in comparison to the first quarter last year. This means the Polish economy is gaining momentum.

Will there be a long-term contract with Naftogaz?

No comment (laughter).

Interview by: Wojciech Jakóbik