Poland Buys More Spot LNG
Polish state oil and gas company PGNiG has bought its fourth spot LNG cargo this year, it said, as it prepares to receive a delivery from Norway March 21.
This is the 12th spot delivery to the President Lech Kaczyński LNG Terminal in Swinoujscie since the facility started its operations, it said.
LNG priccs are very low globally, and with no arbitrage opportuntities, short journeys represent better value for the seller.
PGNiG bought the cargo, produced from the Snohvit field, from Norwegian state-controlled Equinor and the tanker Arctic Discoverer is carrying the equivalent of 84mn m³ of pipeline gas.
“The specifics of spot transactions are that we seek attractive purchase opportunities from loads available on the global market. Good trade relations with our partners that had been established by our LNG office in London are helpful in this matter. PGNiG is already recognizable on the global LNG market as a credible brand and an increasingly active trader,” said PGNiG's executive board member for trade, Maciej Wozniak.
PGNiG has also bought spot cargoes this year from the US and has a long-term purchase contract with Qatar Petroleum. But it has agreements covering a lot more from the US, some with projects yet to take final investment decisions, on free on board coutracts that allow flexible delivery. From 2023 it will have to take over 10bn m³/yr equivalent of LNG from the US and Qatar on long-term capacity or purchase contracts.