New deadline for Poland’s LNG terminal construction
September 11, 2013
Poland's LNG terminal operator Polskie LNG signed an annex to the deal with terminal's general contractor, which extends the deadline for construction completion and increases the value of the contract by EUR 67.5 million to a total of PLN 2.4 billion, Polskie LNG said in a press statement.
Polskie LNG had earlier indicated that the terminal construction deadline would be postponed, among other factors due to financial problems of contractors. One of consortium members, PBG, has been in bankruptcy protection for debt restructuring since June 2012.
The annex increases the value of the remuneration of the general contractor, consortium of Saipem, Technit, and builder PBG,
as it will extend the scope of construction works, the guarantee period, as well as operating support after finishing construction, Polskie LNG said.
The end-2014 deadline constitutes a safe solution for natural gas firm PGNiG, which needs to receive the first shipment of LNG from Qatargas gas group on the basis of a take-or-pay contract around that period, the firm also said.
Commenting on the deadline postponement, Treasury Minister Wlodzimierz Karpinski said that while he is "not pleased" with the fact, "it will allow . . . to attend to matters related with the [LNG] construction such as the North-South corridor, allowing to transport gas from Swinoujscie on the Baltic coast to our southern neighbors and to the Balkans, and PGNiG's contract with Qatargas."
The LNG terminal will comprise of two tanks of 160,000 cubic meters which will allow for importing 5 billion cubic meters of liquefied natural gas annually, with a possibility of increasing the capacity to 7.5 billion cubic meters.