Polish gas giant PGNiG becomes sole user of Lithuanian LNG terminal

PGNiG CEO Piotr Woźniak said at the signing ceremony that the company hopes to stay in Klaipeda beyond the five year period. Leszek Szymański/PAP

Polish gas monopolist PGNiG has signed a five-year contract for the full capacity of the LNG reloading facility for trucks in Klaipeda, Lithuania, which will allow the company to import liquefied natural gas from various sources by sea and sell it to recipients.

The agreement between PGNiG and Klaipedos Nafta, Lithuanian oil and LNG terminal operator was signed on Friday in the presence of Lithuania's Minister of Energy, Zygimantas Vaiciunas who said that the deal reflects the idea of cooperation between the two countries.

"Today, we are expanding the horizons of our cooperation to another area. After electricity, oil and gas, it will also include LNG," he said.

The minister also said that the terminal in Klaipeda is one of the sources of gas for north-eastern Poland.

PGNiG CEO Piotr Woźniak said at the signing ceremony that the company hopes to stay in Klaipeda beyond the five year period.

"PGNiG will decide independently who to buy and bring LNG to the station from, which is very important from the point of view of energy security, he added.

The agreement will be in force as of April 2020.

Klaipeda reloading station has five LNG tanks, each with a capacity of 1,000 cubic metres, which translates into 2,250 tonnes of liquefied gas. LNG deliveries are made by sea. Liquefied gas is supplied by small methane carriers, 30 times smaller than large vessels of this type, or bunkers.

The reloading rate is over 560 tonnes of LNG per hour, the bunkering rate is 112-225 tonnes of LNG per hour.