Poland Inks Deal to Buy U.S. Natural Gas

The deal aligns both with Poland’s goal of reducing its dependence on Russia for gas and the U.S.’s goal of selling gas abroad.

SEATTLE (Oil Monster): Poland’s state-owned natural gas utility signed a 24-year deal Thursday to buy liquefied natural gas (LNG) from the United States.

Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) announced the deal with Cheniere Energy at a ceremony with Polish President Andrzej Duda and U.S. Energy Secretary Rick Perry, Reuters reported.

The deal aligns both with Poland’s goal of reducing its dependence on Russia for gas and the U.S.’s goal of selling gas abroad.

“This is a signal across Europe that this is how your energy future can be developed, the security of the country, the diversity of supply — this is a great day for Europe,” Perry said at the Warsaw event, according to Reuters.

Duda said the deal “will provide Poland with energy security,” and reflects “a real transatlantic partnership.'

PGNiG will get 0.52 million metric tonnes of LNG between 2019 and 2022 and 29 million metric tonnes from 2023 to 2042, the company said.

PGNiG head Piotr Wozniak declined to reveal pricing information, but told reporters that the cost is “much lower” than what the company is paying Russia. Its current contract goes through 2022.

It is the second major deal for U.S. LNG that Poland has signed in as many months.

Courtesy: www.thehill.com