Poland's Świnoujście LNG Project Slips on Timing

The construction of Poland's LNG terminal project in Swinoujscie appears to off track, despite recent comments from the terminal operator just several months ago.

In mid June of this year, Rafal Wardzinski, head of terminal operator Polskie LNG, commented that the Świnoujście facility was expected to be completed in the second half of 2014.

However, Polish Radio News Agency (IAR) reports that Treasury Minister Włodzimierz Karpiński, who commissioned a report on the progress of the construction, will officially announce that that the terminal will be completed no earlier than 2015.

Poland signed a “take or pay contract” with Qatar whereby it will begin paying LNG suppliers whether the terminal is ready or not.  The contact envisages 1.5 billion of cubic meters of gas delivered annually, commencing in 2014.

The delay will require PGNiG to re-negotiate its arrangements with Qatar, or arrange delivery to another terminal in European LNG terminal.

The facility will have a 5 billion cubic meters annual capacity. It is part of the strategy of the EU member Poland to diversify its energy mix and ease its reliance on gas imports from Russia’s Gazprom.