GAZ-SYSTEM sizing up interest in additional regasification capacity at Gdansk FSRU

Poland’s natural gas transmission system operator GAZ-SYSTEM has launched a non-binding market screening procedure to identify the demand for additional regasification capacity of the floating storage and regasification unit (FSRU) in the Gulf of Gdańsk area.

Pursuant to the assumptions set out in the open season procedure initiated in 2021, the new terminal project envisages the construction of the FSRU with a capacity to deliver approximately 6.1 bcm of regasified natural gas annually.

At the planning stage, GAZ-SYSTEM considered the possibility of expanding the regasification capacity of the FSRU terminal depending on market development potential and the increase in demand for natural gas both domestically and in the region.

Considering the observed increased market interest in LNG supplies, GAZ-SYSTEM said it is initiating a non-binding market screening procedure to estimate the demand for additional regasification capacity of the FSRU terminal in relation to the capacity booked under the first phase of the open season procedure.

It is assumed that the additional regasification capacity provided by the FSRU terminal will deliver annually approximately 4.5 bcm of natural gas. The decision on the final regasification capacity of the new FSRU terminal will depend on the market demand declared under the pending procedure.

According to the operator, this non-binding market screening procedure intends to assess both the demand for additional regasification capacity and the interest in the export of regasified LNG towards Slovakia, Lithuania, Denmark, Germany as well as the Czech Republic and Ukraine.

GAZ-SYSTEM invited all entities interested in participating in the non-binding Open Season Procedure to express their interest by 20 March 2023.

“The current geopolitical situation, particularly the suspension of Russian export of natural gas to the European Union, has fuelled market players’ interest in access to stable and secure natural gas supplies, including by means of LNG terminals. We take the energy security of the region very seriously; therefore, the diversification of gas supply sources is the highest priority for our company. In view of the incoming information we have decided to launch a market screening procedure and ultimately provide access to additional LNG supply through the FSRU terminal in Gdańsk”, said Marcin Chludziński, President of GAZ-SYSTEM.

The state-run company operates an LNG terminal in the port of Świnoujście which recently received LNG delivered by the first LNG carrier built for exclusive use by ORLEN Group – the Lech Kaczyński.

Since 2022, the terminal has had a commercial regasification capacity of 6.2 bcm annually. The facility is currently being expanded to increase the capacity to 8.3 bcm of gas per year, which is expected to cover over 40% of the estimated annual demand of Polish customers.

GAZ-SYSTEM informed that the expansion of the terminal is at an advanced stage, and that, thanks to the construction of the third tank and the new quay, the terminal will have not only greater flexibility in accepting deliveries, but also new functionalities.