Contractor of the LNG Terminal extension selected -
Contractor of the LNG Terminal extension selected
Date of publication: 24.06.2020

Polskie LNG from the GAZ-SYSTEM Group and Szczecin and Świnoujście Seaport Authority have signed agreements with the consortium of companies PORR S.A. and TGE Gas Engineering GmbH for the Lech Kaczyński LNG Terminal expansion.

The value of the signed agreements totals to approx. PLN 1.9 billion. The investment project completion date is the end of 2023.

The agreements relate to the extension of the on-shore as well as off-shore part of the LNG Terminal conducted in cooperation with the Szczecin and Świnoujście Seaport Authority in the “design&build” formula. The scope of the agreements covers development of the design documentation (Building Permit Design and Detailed Design), performance of construction and erection works, commissioning of the system and obtaining of the required permits.

The investment project will be executed by two entities:

• Polskie LNG shall be competent for, among others, construction of the new LNG tank with a capacity of approx. 180 thousand m3 gross and performance of the process part of the new berth intended for LNG loading, unloading and bunkering.

• Szczecin and Świnoujście Seaport Authority shall be competent for construction of the hydrotechnical part of the berth, hydrotechnical infrastructure for the transmission pipe rack and complete mooring infrastructure.

-  We are very happy that Polish seaports are involved in the changes that take place in the energy sector in our country. The Szczecin-Świnoujście port complex is fully prepared to diversify the supply of strategic energy resources. The extension of the Świnoujście President Lech Kaczyński LNG Terminal plays a key role in the regasification process and it is also crucial in terms of the energy resources supply for other European countries.  What is more, this project forms part of the wider programme for strategic sea investments which will significantly increase Poland’s potential in the Baltic regionadded Marek Gróbarczyk, Minister of Maritime Economy and Inland Navigation.

- The investment project is an essential element of the strategy to increase the energy security of Poland. The national transmission system is consistently expanded to switch from the presently prevalent east-west direction of supply to the northern direction. Apart from the expansion of the LNG Terminal in Świnoujście, GAZ-SYSTEM Capital Group has been successfully pursuing a number of strategic investment projects such as: the Baltic Pipe Project, the North-South Gas Corridor or the Poland–Lithuania gas interconnectors. Thus we are building Poland’s energy independence and laying grounds for gas market diversification in our part of Europe –  noted Piotr Naimski, Secretary of State in the Chancellery of the Prime Minister, Government Plenipotentiary for Strategic Energy Infrastructure.

- By  the  end of  2023, with the completion of  this investment project, the regasification capacity of the LNG Terminal will reach approx. 8.3 billion m3 per year. Upon its extension, the operational flexibility of the facility will improve, and new gas storage possibilities will open up, which will in turn increase the number of handled LNG carriers, translating directly into heightened security in terms of natural gas supply to the national transmission system. New services will also be provided, which will drive the growth of the gas market in the Central and Eastern Europesaid Tomasz Stępień, President of the Management Board of the LNG and GAZ-SYSTEM companies.

- The extension of the LNG Terminal by another jetty is a natural step in the process of building its potential. It will also provide an additional development boost for the entire Szczecin-Świnoujście port complex. This investment project is extremely necessary since the demand for LNG fuel is on the rise, as a result of the sea industry’s growing concern for the environment. Therefore, with this project we also want to meet the expectations of shipping companies. The Świnoujście Terminal has opened up new opportunities for the port, the city, and the entire region. This particular project may contribute to Świnoujście securing a leading role in the Baltic transshipment of LNG - noted Krzysztof Urbaś, President of the Szczecin and Świnoujście Seaports Authority.

The West Pomerania region will also benefit from the extension in the form of new jobs, higher charges for tax from new properties, increase in demand for outsourcing services, as well as a potential increase in the demand for hotel, catering and transport services.

This year, in parallel to the tender for the Contractor for extension of the LNG Terminal in Świnoujście, Open Season procedure has been held which allows the gas fuel market agents to submit a proposal for regassification service and additional services. On May 29, Polskie LNG and PGNiG signed an agreement for services which will be available after completion of the expansion. The Procedure for the Provision of the LNG Terminal in 2020 confirmed the validity of Terminal expansion.

The expansion is covered by co-financing from the Operational Program Infrastructure and Environment 2014-2020, PRIORITY: VII, MEASURE: 7.1 under the project entitled: “Extension of the functionalities of the LNG terminal in Świnoujście” in the amount of PLN 461 million.