Overview

Poland is building Central Europe's first LNG terminal at the Baltic Sea port of Świnoujście. Originally planned to come onstream in late 2014, the project looks increasingly likely to be delayed until at least 2015, with a contract for 1 mtpa over a 20-year period with Qatargas due to start whether the terminal is ready or not.

The Polskie LNG project has a significant political dimension, with the government in Warsaw keen to pursue any means to diversify the country’s gas import dependence away from Russia. The facility’s 5 billion cubic metre capacity is just under a third of Polish annual consumption, with plans to expand the site to 7.5 bcm under consideration.

Port infrastructure includes an offtake tower for Q-Flex vessels to unload, and the space for a second dock and bunkering facilities if required. Project sponsor Gaz-System has also invested in network projects that will enable LNG imports to be transported throughout Poland. Among the most important of these is an 80 km pipeline which will connect the port with the regional city of Szczecin to the south.

The terminal also marks the northern terminus for the EU’s planned North-South Gas Corridor initiative, which aims to link Świnoujście with a proposed terminal on the Croatian island of Krk via a ladder of interconnectors through Central and Eastern Europe.

Part of the financing for the Polskie LNG scheme came from the EU’s European Investment Bank and EU funds. This amounts to around 30% of the total cost, which has been estimated at around $1 billion. Reports in July suggested contractors may attempt to secure more money for the project’s development, which would raise the total cost.

Profile first uploaded: 04/09/2014