Plinacro, Gaz System Sign MoU

Polish state-owned transmission grid Gaz System said July 7 it signed an agreement in Warsaw with Plinacro, its Croatian state counterpart, to bolster development of the gas market in central Europe.

Gaz System CEO Tomasz Stepien said the agreement would lead to joint support by both gas grid operators of further development of the LNG market as well as underground gas storage facilities.

The signing took place during the Three Seas Initiative of central/east European states, attended by the US president, Donald Trump, who told the gathering on July 6: “I congratulate your nations for already beginning the critical projects that open us up to greater access, and you’ll be totally open and have access to energy markets and remove barriers to energy trade, such as the floating LNG terminal on the Croatian island of Krk.”

The Krk project however is still pending a final investment decision, with start-up now not expected until 2020, while Poland’s existing LNG import terminal at Swinoujscie, which opened late 2015, is under-used.

Trump has been keen to promote US LNG in overseas markets, particularly where Russian pipeline gas has been the fuel of choice. As US supply of LNG keeps rising and is sold free on board, it is this summer coming to the European Union.

Mark Smedley