Polskie LNG and EU funds ink agreement for co-financing Świnoujście LNG terminal extension
Polskie LNG says it has signed with two EU funds a co-financing agreement for the 'Expansion of LNG Terminal' project. The signing ceremony was held on April 24 in Świnoujście. The owner and operator of the installation, Polskie LNG company (a member of GAZ-SYSTEM Group) may apply for the reimbursement of the costs incurred up to PLN 553 million (EUR 128 million) from the European Regional Development Fund and the Cohesion Fund under the Operational Program Infrastructure and Environment whose priorities include the improvement of energy security, the Company said.
The ceremony was attended by the President of the Republic of Poland Andrzej Duda, Chairman of the Council of Ministers Mateusz Morawiecki, Minister of Energy Krzysztof Tchórzewski, Government Plenipotentiary for Strategic Energy Infrastructure Piotr Naimski and Minister of Investment and Development Jerzy Kwieciński.
Recognition by the European Commission of the strategic role of the LNG Terminal as a means to ensure the security of gas supplies not only to Poland but also to the Baltic States through the diversification and promotion of new transport routes in the region is of pivotal importance. The LNG Terminal of the President Lech Kaczyński substantially contributes to Poland's and neighboring countries' independence from gas supplies from the east, and is consistent with three new pillars of the EU energy policy: sustainable development, improvement of security of supply, and increased competitiveness - said Minister of Energy Krzysztof Tchórzewski.
- The expansion of the LNG Terminal constitutes a part of the concept of the so-called Northern Gate which also includes Baltic Pipe gas pipeline construction project. Through the new pipeline, natural gas from fields on the Norwegian Continental Shelf will be transmitted to Poland. The fuel delivered by means of both projects will satisfy Poland's demand for natural gas imported from reliable suppliers and at competitive prices - reckoned Piotr Naimski, Government Plenipotentiary for Strategic Energy Infrastructure.
- The development of the LNG Terminal infrastructure in Świnoujście is a cornerstone of the Strategy consistently implemented by GAZ-SYSTEM Group. This co-financing agreement serves as evidence that another major infrastructural project of particular relevance for the entire region has been recognized by the European Commission - said Tomasz Stępień, President of the Management Board of GAZ-SYSTEM.
- This state aid is dedicated to supporting the expansion of the plant including the construction of new elements and consequently additional functionalities of the terminal - explained Paweł Jakubowski, President of Polskie LNG. - We aim at increasing the re-gasification capacity of the plant by 50% to achieve the annual capacity of 7.5 billion m3 of natural gas, corresponding to approx. 40% of Poland's current demand for this fuel. The expansion will enable us to launch a more competitive offer for regasification and LNG unloading in response to ever-increasing demand for those services in Poland.
The amount of the state aid awarded to the project accounts for approx. 2/3 of the planned capital expenditure. The funds are granted to the expansion of terminal functionality through:
- the increase of regasification capacity of the Terminal to 7.5 billion m³/year;
- the expansion of the sea transshipment system;
- the construction of an onshore LNG-to-rail loading system;
- the construction of the 3rd LNG process storage tank together with necessary installations and equipment.
The LNG Terminal expansion project is enlisted in the European Union’s Projects of Common Interest (PCI). This list includes the projects recognized to be of particular importance for increasing the security and diversification of natural gas supplies in Europe and for building an integrated and competitive market, thus contributing to the achievement of the European energy and climate goals.