What goes on in Poland on the 28th of December.
Russia fears the LNG deluge. PGNiG can count on better prices from the USA
The Russian analytical center Vygon Consulting predicts that in the next seven years, the supply of liquefied gas on the market will increase one and a half times. If all LNG projects fail to the Russians, they can only count on a small part of this market.
Vygon Consulting predicts that the supply of LNG on the global market will increase from the current 291 million tonnes per year to 438 million tonnes in 2025. If the Arctic LNG 2, Baltic LNG projects and the third stage of Sakhalin 2 are not completed on time, Russia’s market share will reach “only” 6 percent. Meanwhile, the potential of Russian projects for liquefied gas is limited by Western sanctions and the current low gas price.
The center announces the beginning of a new investment cycle in the LNG sector. Higher gas prices in 2015 provoked the release of a number of final investment decisions regarding the construction of gasports. There are 61 LNG projects planned for 93 million tonnes, of which 51 per cent are located in the USA. If all of them are built on time, the market is in need of oversupply of liquefied gas, which in 2020 may reach about 21 million tons.
That would be good news for PGNiG, which contracted a significant volume of LNG from the USA in several contracts concluded in November and December 2018. In 2023, PGNiG is to have a total of 5,5 billion cubic meters liquefied gas from the United States at its disposal. Oversupply on the liquefied gas market could cause a reduction in the price of supplies that Poles will provide to the domestic market or sell further.
Spot LNG delivery from Norway for PGNiG arrived in Świnoujście
Meanwhile, the day after Christmas, the forty-seventh delivery of liquefied gas reached the LNG terminal in Świnoujście. This time it was a spot from Norway for PGNiG.
The gas was delivered by the Arctic Voyager unit, which reached the LNG terminal before 11 am Polish time on 27 December. It arrived from Hammerfest LNG in Norway, from where it delivered the last Statoil spot charge to PGNiG this year.