PGNiG: Poland buys less gas from Russia and more LNG

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In relation to media releases shared by Gazprom, PGNiG informs that the growth of imports of liquefied natural gas (LNG) contracted from Qatar, Norway and the USA, was tenfold higher than the growth of imports of natural gas from Russia. Compared to purchases of gas from Russia, a rise in LNG imports was also greater in terms of volume.

Between January and July 2018, PGNiG imported ca. 0,6 bcm more of LNG on a year-on-year basis, which is an increase of 60%. Gas imports from Russia for the same period rose on a year-on-year basis by less than 0,4 bcm, an increase of just ca. 6%.

Moreover, PGNiG informs that volatility in annual Russian gas import is not a result of any long-term contract amendments. Annual import volumes must always exceed a minimal level imposed by Gazprom under a take-or-pay clause, and they need to be smaller than maximum annual volumes agreed years ago in the long-term import contract which is to expire in 2022.

PGNiG also informs that between January and July 2018 the share of Russian gas in PGNiG import structure has decreased again and currently stands at 75% of total imports contracted by PGNiG, which is a drop by further 2% year-on-year. In the same period the share of LNG has been steadily rising to reach 19% of total imports contracted by PGNiG, representing an increase of 6% year-on-year.

Therefore, PGNiG suggests a cautious approach to the scope of and manner in which Gazprom shares information regarding natural gas sales to Poland, especially that for a few years now Russia has not been the sole source of gas imports to Poland.

Apart from natural gas production in Poland, which covers around 25% of Polish demand, PGNiG is importing growing volumes of natural gas from an increasing number of countries. Natural gas imports are on the rise in response to a rapid growth of Polish market gas demand. Natural gas consumption in Poland rose from 15 bcm in 2015 to 17 bcm in 2017, which represents the most dynamic growth in the history of the Poland, and counts among the best results in Europe. PGNiG has also been preparing to supply the Polish market with natural gas coming from the Norwegian Continental Shelf. Starting from the end of 2022 it is to be transported by the Baltic Pipe gas link from the North Sea through Denmark and the Baltic Sea. Moreover, starting from 2022 PGNiG will have a portfolio of over 4 million tonnes per annum of LNG from the USA (ca. 5.5 bcm after regasification) under the long-term contracts that are currently being developed.

PGNiG