Energy LNG 10 July, 2017 9:00 am   
COMMENTS: Mateusz Gibała

Naimski: US LNG offer has be a bargain

In an interview for the Polish Radio Piotr Naimski, the Government Plenipotentiary for Strategic Energy Infrastructure talked about contract negotiations for US LNG  deliveries to Poland.

“Trump did not haggle during the meeting with President Duda and members of the government. He offered cooperation and a return to the tradition of good trans-Atlantic relations between the US and Europe. He offered us a special place within that cooperation framework. It wasn’t the time for bargaining, but for political talks, presentation of positions, which apparently are convergent,” Naimski stated.

The journalist made a joke that the US was making a deal by selling LNG and Patriot missiles to Poland, while Poles were happy as a sandboy. “The mocking and irony are not really necessary,” the minister replied. “Contracts are not signed by companies, not presidents. When Trump said that if we had any problems with gas we should call him he was joking. PGNiG is negotiating on a deal with US companies. The talks are ongoing. Hopefully, they will quickly end and will have a good outcome. Trump’s green light is just a supporting factor. The contracts have to be mutually beneficial, they will be.”

“The production of shale gas in the US is very cheap. Americans know they have to offer a competitive deal to Polish consumers. This might happen. The first US LNG delivery to Poland shows it’s possible. PGNiG bought the gas at an attractive price and the American company earned money,” said the minister. “This is a matter of trade negotiations. We are hoping they will have a positive outcome. We are looking for new gas sources. Currently the terminal accepts deliveries from Qatar on the basis of long-term contracts and we want to complete that with gas deliveries from America.”

“We have decided to expand the LNG terminal. It will play an important role for gas supply after 2022 when we will have a connection with the Norwegian Shelf,” Naimski said. “The contracts with Americans will be the best bargain possible; however, the details remain to be seen. This depends on PGNiG and maybe other gas importers to Poland. It is hard to predict. We would like the deliveries from new gas sources to be based on a solid foundation. This is guaranteed by medium- and long-term contracts. Spot contracts are the most cost-effective and this is beneficial and we will be making them as well.”

“The practical possibility of cooperation with regard to energy sources supply between the United States and Europe is a strategic change. The existing forms of cooperation are augmented by the opportunity of practical cooperation with regard to energy security. This is a very important element. This is causing opposition and anxiety among those who want to sustain their monopolistic position. From this point of view, the voices that are coming from Moscow are understandable. We are pursuing our own tactics, strategy and interests. Currently they are congruent with those of the US and we will be using that. Common trans-Atlantic interests are, in a sense, a practical approach to what Trump said at the Krasinski Square,” said Naimski.