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GAZ-SYSTEM launches Phase 2 of FSRU Open Season Procedure

Polish gas transmission system operator, GAZ-SYSTEM has launched Phase 2 of its Open Season procedure for the floating storage regasification unit (FSRU) terminal project in Gdańsk, the company announced on Tuesday (6 June).

Phase 1 of the Open Season Procedure was launched in the last quarter of 2021, with the aim of obtaining binding orders from the participants and their binding commitment to book FSRU Regasification Services under Phase 2 of the Procedure at an appropriate level. Phase 1 ended with the signing of an Order to Proceed (OtP) and GAZ-SYSTEM’s proceeding with the implementation of the first phase of the project, that is, the commencement of design engineering, as defined in the General Terms and Conditions (GTCs).

“Pursuant to the General Implementation Conditions – in view of the fact that within Phase 1 of the Procedure, an OtP Agreement was concluded with a Participant who submitted a binding Order covering 100 per cent of the FSRU Regasification Services provided by GAZ-SYSTEM under the Procedure – the commencement of the registration for Phase 2 of the Procedure shall depend on the submission of an Offer by that Participant covering an equivalent level of Regasification Services and the same period of provision of Regasification Services, for example, the same Gas Years as in the Regasification Order, and on the conclusion with that Participant of a Regasification Agreement and a Regasification Order covering the specified level of Regasification Services,” said GAZ-SYSTEM via a press release.

The company will call on the given Participant to submit an appropriate Offer to conclude a Regasification Agreement and a Regasification Order. The Participant should submit an Offer confirming the order proposed under the OtP Agreement no later than 7 July 2034 by 5 pm, GAZ-SYSTEM said.

“GAZ-SYSTEM will proceed with the subsequent stages of Open Season Phase 2 Procedure and will make available to the entities concerned the Regasification Services that were not yet booked, in accordance with the provisions of Sections 12 – 15 of General Implementation Conditions, only in the event that no Regasification Agreement and Regasification Order covering 100 per cent of the Regasification Services made available by GAZ-SYSTEM are concluded with the Participant referred to above in this Open Season Procedure,” the Polish gas transmission system operator said.

The company also said that it will provide the details of the actions undertaken, in particular about the commencement of the registration stage for Open Season Phase 2 sufficiently in advance.

The binding Open Season FSRU Procedure aims to confirm the interest of market participants in the regasification capacity of the FSRU Terminal, declared by submitting binding long-term orders for the FSRU regasification services that would justify the implementation of the project.

The new FSRU Terminal project envisages the construction of a Floating Storage Regasification Unit capable of offloading liquefied natural gas (LNG), process storage and regasification of LNG in the area of Gdańsk (north Poland). The FSRU terminal is to be designed to perform a regasification of 6.1 billion cubic metres (bcm) of gaseous fuel per year.

The FSRU regasification services will be provided on condition of a positive Final Investment Decision made by GAZ-SYSTEM and the completion of the investment project by the assumed deadline of 1 January 2028, the company said.

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