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Polish Briefing 2 May, 2019 9:00 am   
Editorial staff

Polish Briefing: Lotos is planning a small-scale LNG terminal

What goes on in Poland on the 2nd of May.

Lotos is looking for an entity that will conduct a feasibility study for the construction of an LNG terminal in Gdańsk

Grupa Lotos in a consortium with the operator of industrial gas pipelines Gaz – System analyzes the project of the construction of a small scale LNG terminal in Gdańsk, which is a reloading and distribution station for the final customer. The projects also includes fuel stations and bunker construction with electricity generation function. Lotos is a project leader, which is co-financed by the European Union. The company is looking for an entity that could conduct a feasibility study for the construction of a small-scale LNG terminal in Gdańsk. In mid-April a tender was opened in this case. However, this is a different project from the planned large floating terminal to be built in Gdańsk.

On the company’s website, we read that in the mid-April the Lotos Group announced an order, the object of which is to comprehensively develop a feasibility study for the construction of a small scale LNG terminal in Gdańsk – a reloading base, bunkering and LNG distribution to final consumers and fuel stations.

The comprehensive development of a feasibility study regarding the task of “Small LNG trans-shipment terminal in Gdańsk and bunkering services included:

  1. Technical Concept of LNG R Terminal in Gdansk
  2. Environmental impact assessment;
  3. Stakeholder analysis;
  4. Organization of the project;
  5. Project implementation plan;
  6. Analysis of available financial resources;
  7. Risk analysis;
  8. Cost-benefit analysis (Cost-Benefit Analysis) to confirm what the contractor will submit together with the offer an appropriate statement. – The subject of the order is a comprehensive preparation of a feasibility study for the construction of a small-scale LNG terminal in Gdańsk – a reloading base, bunkering and LNG distribution to final consumers and fuel stations – we read in the offer.

The value of the project is 1.74 million euros. The amount of co-financing from the European Union’s “Connecting Europe” instrument is over 1 million EUR. The consortium responsible for the project consists of Grupa Lotos and Gaz – System. The latter is responsible for conducting a preliminary feasibility study for the construction of a small scale LNG terminal in Gdańsk – a reloading base, bunkering and LNG distribution to final consumers and fuel stations.

The company informs that the possible positive effects of the project include: providing infrastructure that allows the use of LNG as a fuel for maritime transport in Trójmiasto ports belonging to the TEN-T network; development of local LNG storage infrastructure with the possibility of its use for both energy purposes and as fuel in sea and land transport, in the TEN-T corridor, Baltic Sea – Adriatic Sea. It is also the establishment of a local infrastructure enabling the redistribution of LNG to be used in electricity and heating, in areas with no access to network gas in north-eastern Poland.

The project is related to another, which is supposed to increase the loading capacities of the LNG terminal in Świnoujście from 5.0 bcm to 7.5 bcm gas per year (after regasification). The feasibility study of the installation in Świnoujście, prepared for additional storage capacities and functionalities, creates a real opportunity to create a market for LNG transhipment and distribution in Poland and the region. The LNG base in Gdańsk is to enable the direct development of the LNG market in Poland, thus increasing the economic viability of the LNG terminal expansion in Świnoujście.

The second FSRU LNG terminal is another project

Another project is a floating LNG terminal in the Gulf of Gdansk, which Gaz-System is working on. Feasibility study of FSRU (Floating Storage and Regasification Unit), including a floating terminal, includes preparation for the implementation of an investment allowing for the supply of liquefied natural gas to Poland, in the size of 4.1 billion cubic meters. up to 8.2 billion cubic meters. The Government Plenipotentiary for Strategic Energy Infrastructure, Piotr Naimski, reassured this year that the decision on the creation of the second gas port, this time a floating vessel in Gdansk, has already been made. It is to be built between 2024 and 2025.