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GAZ-SYSTEM signs charter agreement for Poland’s first FSRU

Poland’s gas transmission system operator GAZ-SYSTEM announced on Thursday (25 April) that it has signed a charter agreement specifying the conditions for the delivery and operation of a floating storage regasification unit (FSRU) unit in Gdańsk, Poland.

The contract was concluded with White Eagle Energy, a company from the Mitsui O.S.K. Lines group.

“The FSRU terminal is a strategic investment that will meet the most urgent needs related to ensuring the diversification and security of natural gas supplies both to Poland and the region. This is reflected in the allocation of funds from the KPO under the REPowerEU program for the construction of the onshore part of the FSRU. The contracting of an LNG storage and regasification unit by GAZ-SYSTEM is another important stage of this project,” said Maciej Bando, Government Plenipotentiary for Strategic Energy Infrastructure.

According to the agreement, the chartered vessel is expected to have a capacity of approximately 170,000 cubic metres of LNG and a regasification capacity of approximately 6.1 billion cubic metres of natural gas per year. On-board liquefied natural gas regasification devices will have a nominal power of not less than 783,500 cubic metres per hour.

“The signed Time Charter Party (TCP) charter agreement is the result of a very intensive tender process initiated last year and many months of negotiations between GAZ-SYSTEM and Mitsui OSK Lines. The contract specifies detailed conditions for the charter of the first floating regasification unit in Poland,” said Sławomir Hinc, President of the Management Board of GAZ-SYSTEM. “The second LNG Terminal in Poland will ensure flexibility of natural gas supplies to Poland, which is necessary to guarantee continuity of supply to consumers in each voivodeship and operational security of the national transmission system.”

The contract was concluded for a period of 15 years with the possibility of further extension. Based on the charter agreement, GAZ-SYSTEM has also secured the right to purchase the FSRU unit.

The construction of the vessel will be undertaken by Korean ship building company Hyundai Heavy Industries, with which White Eagle Energy has simultaneously entered into a “ship building contract (SBC).”

The FSRU terminal construction project envisages a single floating FSRU unit in the Gdańsk Bay, which would enable LNG unloading, process storage, LNG regasification, and could also be adapted to provide additional services.

“By signing the TCP agreement, we have achieved an important milestone. I would like to take this opportunity to express my appreciation for the commitment and effort put into this process by both parties. Mitsui OSK Lines appreciates the opportunity to contribute to increasing Poland’s energy security. I believe that this agreement will allow Mitsui OSK Lines to leverage its extensive experience and knowledge from implementing such projects around the world. We are looking forward to developing this project with our valued partners and GAZ-SYSTEM. We are convinced that this is the beginning of a long-term relationship based on trust, mutual respect and a common vision of the future,” said Toshinobu Shinoda, Managing Director of Mitsui OSK Lines, responsible for Europe and Africa.

In August 2023, ORLEN placed an order covering 100 per cent of the regasification services provided via the planned FSRU unit.

Poland completes regasification capacity booking for Gdańsk FSRU Terminal

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