PGNiG and Qatargas sign memorandum of understanding for the LNG supplies contract

abarrelfullabarrelfull wrote on 11 Dec 2014 07:50
Tags: europe lng pgnig poland qatargas

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Polskie Górnictwo Naftowe i Gazownictwo SA and Qatar Liquefied Gas Company Ltd have signed a memorandum of understanding concerning the LNG supplies contract of June 29th 2009. Pursuant to the Memorandum, PGNiG i Qatargas, which have a long track record of cooperation, have changed the terms on which the Long-Term Contract will be performed in 2015.

According to the Memorandum, Qatargas will place the LNG expected to be supplied to PGNiG in 2015 (approximately 1.5 bcm) on other markets, leveraging its position as one of the world's leading LNG producers and suppliers.

The Memorandum also sets out the terms on which PGNiG and Qatargas will agree on LNG supplies to the Świnoujście LNG terminal in 2015, depending on Poland's energy demand.

PGNiG will cover the potential difference between the LNG price specified in the Long-Term Contract and the market price at which Qatargas sells the LNG originally contracted by PGNiG. If the price is not satisfactory to PGNiG, any unsold LNG supplies will be shifted to later years of the Long-Term Contract.

"I believe the Memorandum is beneficial both to PGNiG and Qatargas. It shows that the fruitful relationship between our companies continues," said Mariusz Zawisza, President of the PGNiG Management Board.

Based on the current projections for global LNG prices and natural gas prices in Poland in 2015, the PGNiG Management Board believes that the Memorandum may enable PGNiG to achieve better results on trading in the natural gas supplied under the Long-Term Contract compared with the original assumptions.

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