Świnoujście Polskie LNG Terminal
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Świnoujście Polskie LNG Terminal is an operating LNG terminal in Poland.
Location
The map below shows the terminal, near Świnoujście, in Świnoujście County, Województwo Province.
Project details
- Operator: GAZ-SYSTEM S.A.[1]
- Owner: Polskie LNG S.A.
- Parent: PGNiG (Government of Poland)
- Location: Świnoujście, Świnoujście County, Województwo Province, Poland
- Coordinates: 53.909167, 14.294722 (exact)
- Capacity: 5 billion cubic meters per year[2] / 3.7 mpta[1]
- Cost: €950 million (US$1.1 billion)[3]
- Financing: €133 million (US$189.9 million) loan from the European Investment Bank[4]; €75 million (US$94.7 million) loan from the European Bank for Reconstruction and Development[5]; €311 million (US$377.46 million) equity investment by Gaz-System; €121.8 million (US$147.6 million) grant from the European Structural Funds and a €65.3 million (US$79.12 million) grant from the European Commission[6]
- Status: Operating
- Type: Import
- Start year: 2016[1]
Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day
Background
Świnoujście Polskie LNG Terminal is a liquefied natural gas (LNG) regasification terminal in Poland. The plant is owned by Gaz-System, a subsidiary of state-owned energy firm PGNiG. Front-end engineering was conducted by SNC Lavalin, and the construction contract was carried out by a consortium of six firms, led by Saipem.
Construction began in March 2011, and the terminal was brought online in October 2015.[7][3][8] Discussions of the terminal began as early as 2006,[7] and funding was secured in March 2010, which is presumed to be the final investment decision date.[3] Identified debt, equity and public grant financing for the terminal totalled US$888 million.
Pipeline Connections
The terminal is connected to the Baltic Pipeline, a bidirectional gas pipeline connecting Poland to Denmark and allowing Poland to receive up to 10 bcm of Norwegian gas each year (3bcm/y could flow in the opposite direction), while, on the other hand Russian gas and excess gas from the terminal can go to Denmark.[9]
Expansion project
Expansion
- Owner: Polskie LNG S.A.
- Parent: PGNiG (Government of Poland)
- Location: Świnoujście, Świnoujście County, Województwo Province, Poland
- Coordinates: 53.909167, 14.294722 (exact)
- Capacity: 1.2 billion cubic meters per year[10]
- Cost: €427 million (US$483 million) for the overall expansion[11]
- Financing: A €130 million (US$157 million) grant from the European Regional Development Fund[12]
- Status: Operating[10]
- Type: Import
- Start Year: 2022[10]
In April 2017, the plant's owners approved a plan to expand the plant by 50%, by adding a second berth and a third storage tank.[13][14] In January 2019 Polski LNG announced that it had obtained environmental and location permits for the expansion.[15]
According to Food and Water Europe's 2019 profile of Poland's gas use and production, "... between the 2nd half of 2016 and March 2019, the terminal was only used at under 40% of its capacities. At a time when LNG plants are lying idle (all EU terminals have worked at less than 25% of their capacity since 2012) and when many energy analysts believe that 'gas delivered by tanker will never be able to compete with gas delivered by pipeline,' it seems irresponsible to extend (especially with tax payers money) the capacities of a terminal which has just been commissioned and therefore not yet demonstrated its commercial viability. Nevertheless, the extension project was included in the 3rd list and applied for the 4th PCI list. On top of this, Poland also discusses a second LNG import terminal, the Polish Baltic Sea Coast Terminal.[16]
In October 2019, the European Commission announced that it had approved a €130 million grant from the European Regional Development Fund for the project's expansion.[12] The announcement was criticised by environmental groups. Frida Kieninger, from Food & Water Europe, said, "The climate emergency cannot be solved by supporting dozens more fossil gas projects. This fourth list of priority EU energy projects completely contradicts the Commission’s stated aim of decarbonising our economy."[17]
Construction appears to have begun in February 2021.[18]
In January 2022, owner PGNiG confirmed that the first phase of the terminal's expansion had been completed, raising annual capacity from 5 bcm/y to 6.2 bcm/y.[10]
Expansion 2 Project Details
- Owner: Polskie LNG S.A.
- Parent: PGNiG (Government of Poland)
- Location: Świnoujście, Świnoujście County, Województwo Province, Poland
- Coordinates: 53.909167, 14.294722 (exact)
- Capacity: 2.1 billion cubic meters per year[19][20]
- This capacity is presumed, as it represents the difference between the 7.5 billion cubic meters per year capacity of the original terminal and first expansion, and the 8.3 billion cubic meters per year planned for with the second expansion
- Status: Operating[21]
- Type: Import
- Start Year: 2024[22]
- Formerly 2023[19]
Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day
Expansion 2 Background
In June 2020, a US$483 million contract was signed to expand the Świnoujście terminal to a capacity of 8.3 billion cubic metres by 2023.[20] Increasing domestic demand, as Poland begins to wean itself off coal-fired power production, and reducing the country’s reliance on Russian gas were touted as the reasons for finalising the expansion agreement.[20] This second expansion is expected to be operational in 2023.[19] Construction appears to have begun in February 2021.[23]
According to the June 2024 GIIGNL report, construction is ongoing and scheduled for completion later in 2024.[22]
In December 2024, LNG Prime reported that the facility had been expanded with a new storage tank and jetty, and that the new infrastructure had received its commissioning cargo.[21]
Financing
The international law firm Norton Rose Fulbright disclosed in July 2020 that it had advised a consortium of ten banks on the US$ 1.4 billion financing for Gaz-System which will be used as a stable source of funding for projects by the company to implement its 2020-2025 investment strategy, including the expansion of the Świnoujście Polskie LNG Terminal and the Baltic Pipe Project. The banks involved in the financing are: Alior Bank S.A., Bank Gospodarstwa Krajowego, Bank Millennium S.A., Bank of China (Luxembourg) S.A. Oddział w Polsce, BNP Paribas Bank Polska S.A., CaixaBank, S.A. (Spółka Akcyjna) Oddzial w Polsce, China Construction Bank (Europe) S.A. (Spółka Akcyjna) Oddział w Polsce, Credit Agricole Bank Polska S.A., mBank S.A. and Powszechna Kasa Oszczędności Bank Polski S.A.[24]
Articles and resources
References
- ↑ 1.0 1.1 1.2 International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 5, 2022.
{{cite web}}
: CS1 maint: url-status (link) - ↑ "Terminal LNG: LNG Terminal in Świnoujście". terminallng.gaz-system.pl. Retrieved 2022-03-18.
- ↑ 3.0 3.1 3.2 Swinoujscie LNG Gas Terminal, Poland, Hydrocarbons-technology.com, accessed July 2017.
- ↑ Swinoujscie LNG Terminal, EIB website, accessed January 2021
- ↑ Poland: Swinoujscie LNG Terminal Secures EBRD Loan, Offshore Energy, Oct. 4, 2012
- ↑ Swinoujscie LNG Receiving Terminal, IJGlobal TRANSACTION DATA, accessed January 2021
- ↑ 7.0 7.1 Świnoujście Polskie LNG Terminal, Wikipedia, accessed April 2017. The terminal cost approximately US$1.1 billion.
- ↑ Świnoujście gas terminal officially opened, Radio Poland, 12 Oct. 2015.
- ↑ Poland, Food and Water Europe, accessed December 5, 2019
- ↑ 10.0 10.1 10.2 10.3 "PGNiG to take delivery of 95 million cbm of natural gas in mid-January". Poland at Sea. January 11, 2022.
{{cite web}}
: CS1 maint: url-status (link) - ↑ Lech Kaczyński LNG Import Terminal Expansion, NS Energy, accessed Dec. 12, 2021
- ↑ 12.0 12.1 Energy Union: EU invests to upgrade Polish Liquefied Natural Gas terminal in Świnoujście, European Commission press release, Oct. 18, 2019
- ↑ Gaz-System Will Expand the LNG Terminal in Świnoujście, Gaz-System press release, 21 Apr. 2017.
- ↑ Gaz-System green-lights Polish LNG terminal expansion, LNG World News, 20 Apr. 2017.
- ↑ Polskie LNG gets permits for terminal expansion, LNG World News, Jan. 24, 2019
- ↑ Poland, Food and Water Europe, accessed December 5, 2019
- ↑ Frédéric Simon, Greens furious as EU pours €130m into Polish LNG terminal, EURACTIV, Oct. 18, 2019
- ↑ Adnan Bajic (2021-02-11). "Polskie LNG cleared to built third LNG tank at Świnoujście". Offshore Energy. Retrieved 2023-01-23.
- ↑ 19.0 19.1 19.2 "LNG Database". Gas Infrastructure Europe. Retrieved June 23, 2022.
{{cite web}}
: CS1 maint: url-status (link) - ↑ 20.0 20.1 20.2 Agnieszka Barteczko, "Poland signs deals to expand its LNG terminal," Reuters, Jun. 24, 2020
- ↑ 21.0 21.1 Staff, LNG Prime (2024-12-04). "Poland expands LNG import terminal". LNG Prime. Retrieved 2024-12-06.
- ↑ 22.0 22.1 GIIGNL. The LNG Industry: Annual GIIGNL Report. June 2024.
- ↑ Adnan Bajic (2021-02-11). "Polskie LNG cleared to built third LNG tank at Świnoujście". Offshore Energy. Retrieved 2023-02-11.
- ↑ Norton Rose Fulbright advises a consortium of banks on financing for GAZ-SYSTEM, Poland’s designated natural gas transmission system operator, Norton Rose Fulbright press release, July 2020