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Released April 03, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) has approved 128 million ($145 million) to support the expansion of Poland's first and only liquefied natural gas (LNG) import terminal in Swinoujscie.
The funding comes just months after Polskie LNG, the operator of the Swinoujscie LNG terminal, received environmental permits for its expansion project. The expansion project consists of construction of an additional 180,000-cubic-metre cryogenic storage tank that will boost the terminal's capacity from 5 billion cubic meters (bcm) per year to 7.5 bcm per year. It will also see an LNG-to-rail transhipment installation, which will extend the range of services provided with the possibility of natural gas transhipment onto ISO containers and rail tankers. There are plans also to build a second jetty for loading and unloading of LNG carriers, LNG transhipment and handling LNG bunker vessels and providing bunkering services. The main terminal expansion project is expected to cost about 250 million euro ($285 million). A main contractor will be appointed by the end of 2019, Polskie LNG said. For additional information, see August 21, 2018, article - Poland Plans Major Expansion at First LNG Terminal.
The EC's support comes as Europe attempts to increase its LNG terminals capacity in order to reduce its reliance on Russian gas imports. According to King & Spalding, Europe has 28 large-scale LNG import terminals, 24 are in European Union (EU) countries, and four are in non-EU Turkey. By the end of 2017 total regasification capacity in Europe's 28 large-scale LNG terminals was 227 bcm per year, capable of covering approximately 40% of Europe's gas demand. Two new European LNG import terminals are currently under construction in Spain on the islands of Tenerife and Gran Canaria.
The EC stated: "Polish LNG terminal operator Polskie LNG has already launched a tender procedure to select a contractor for three key projects within the first Polish LNG import facility, which includes the construction of the third LNG storage tank, delivery of additional process installations increasing the regasification capacity to 7.5 billion cubic meters per year, and the LNG transhipment installation together with a railway siding. Reaching the target capacity of 7.5 bcm/year is planned for 2021, while the other two projects are scheduled for completion in the second quarter of 2023."
The existing Swinoujscie terminal consists of a 3-kilometre (km) breakwater with a jetty that is able to unload carriers with the capacity ranging from 120,000 million cubic meters (m3) to 217,000 m3, two 160,000-m3 LNG storage tanks, regasification facilities and an 85-km pipeline connecting the facility to the Polish gas grid.
In November, Poland signed a landmark 24-year deal for LNG with U.S. supplier Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas). A month earlier, PGNiG signed a 20-year LNG deal with U.S. supplier Venture Global LNG Incorporated (Washington, D.C.). It also signed a 20-year LNG deal with Sempra's (NYSE:SRE) Port Arthur LNG project in Texas for the supply of 2.7 billion cubic meters per year, starting in 2023. For additional information, see November 19, 2018, article - Poland Turns to U.S. for LNG and December 20, 2018, article - Poland Inks Yet Another Deal for U.S. LNG.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The funding comes just months after Polskie LNG, the operator of the Swinoujscie LNG terminal, received environmental permits for its expansion project. The expansion project consists of construction of an additional 180,000-cubic-metre cryogenic storage tank that will boost the terminal's capacity from 5 billion cubic meters (bcm) per year to 7.5 bcm per year. It will also see an LNG-to-rail transhipment installation, which will extend the range of services provided with the possibility of natural gas transhipment onto ISO containers and rail tankers. There are plans also to build a second jetty for loading and unloading of LNG carriers, LNG transhipment and handling LNG bunker vessels and providing bunkering services. The main terminal expansion project is expected to cost about 250 million euro ($285 million). A main contractor will be appointed by the end of 2019, Polskie LNG said. For additional information, see August 21, 2018, article - Poland Plans Major Expansion at First LNG Terminal.
The EC's support comes as Europe attempts to increase its LNG terminals capacity in order to reduce its reliance on Russian gas imports. According to King & Spalding, Europe has 28 large-scale LNG import terminals, 24 are in European Union (EU) countries, and four are in non-EU Turkey. By the end of 2017 total regasification capacity in Europe's 28 large-scale LNG terminals was 227 bcm per year, capable of covering approximately 40% of Europe's gas demand. Two new European LNG import terminals are currently under construction in Spain on the islands of Tenerife and Gran Canaria.
The EC stated: "Polish LNG terminal operator Polskie LNG has already launched a tender procedure to select a contractor for three key projects within the first Polish LNG import facility, which includes the construction of the third LNG storage tank, delivery of additional process installations increasing the regasification capacity to 7.5 billion cubic meters per year, and the LNG transhipment installation together with a railway siding. Reaching the target capacity of 7.5 bcm/year is planned for 2021, while the other two projects are scheduled for completion in the second quarter of 2023."
The existing Swinoujscie terminal consists of a 3-kilometre (km) breakwater with a jetty that is able to unload carriers with the capacity ranging from 120,000 million cubic meters (m3) to 217,000 m3, two 160,000-m3 LNG storage tanks, regasification facilities and an 85-km pipeline connecting the facility to the Polish gas grid.
In November, Poland signed a landmark 24-year deal for LNG with U.S. supplier Cheniere Energy Incorporated (NYSE:LNG) (Houston, Texas). A month earlier, PGNiG signed a 20-year LNG deal with U.S. supplier Venture Global LNG Incorporated (Washington, D.C.). It also signed a 20-year LNG deal with Sempra's (NYSE:SRE) Port Arthur LNG project in Texas for the supply of 2.7 billion cubic meters per year, starting in 2023. For additional information, see November 19, 2018, article - Poland Turns to U.S. for LNG and December 20, 2018, article - Poland Inks Yet Another Deal for U.S. LNG.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
