Polish gas monopoly PGNiG (PGN.WA) and QatarGas have signed a long-term liquefied natural gas, or LNG, supply deal, a key requirement for Poland to diversify its gas supply, the country's Treasury Ministry said Monday,
In the years 2014-2034, QatarGas has agreed to supply state-controlled PGNiG with about 1 million tons of LNG, or about 1.5 billion cubic meters, a year to a terminal to be built on the Baltic coast, scheduled for completion in 2014.
These supplies will be worth about $550 million a year, depending on the price of crude oil and a pricing formula, the Treasury Ministry said.
The contracted amounts can the increased, the ministry said. Supplies from QuatarGas will be supplemented by short-term LNG contracts of about 1 billion cubic meters.
Poland currently imports some two-thirds of its gas consumption from Russia's OAO Gazprom (GAZP.RS).