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The Contractor for the extension of the LNG Terminal selected

Polskie LNG, a member of the GAZ-SYSTEM Group, and the Szczecin and Świnoujście Seaports Authority have signed a contract with the consortium of PORR S.A. and TGE Gas Engineering GmbH for the extension of the President Lech Kaczyński LNG Terminal.

The total contract value is approx. PLN 1.9 bn. The project completion is scheduled in the end of 2023.

In fact, the project involves several contracts that cover the extension of the onshore and offshore parts of the LNG Terminal in cooperation with the Szczecin and Świnoujście Seaports Authority. The project delivery is based on the “Design-Build” scheme. The contracts cover the development of the design (permit and construction designs), construction and assembly, as well as commissioning and permitting of the operation.

Two companies will be responsible for the implementation of the project:

  • Polskie LNG is responsible for the building of a new storage tank of approx. 180 thou. cubic meters and the technological installation of the new platform designed for LNG unloading, loading and bunkering.
  • The Szczecin and Świnoujście Seaports Authority will be responsible for the building of a new jetty, hydrotechnical infrastructure of a trestle bridge and complete berthing infrastructure.

“We are very glad that Polish seaports are engaged in the energy transformation of the country. The Port of Szczecin-Świnoujście is prepared to diversify strategic supply of energy resources. The extension of the President Lech Kaczyński LNG Terminal is a crucial component of re-gasification and supply of energy resources also to other European countries. Moreover, the project fits very well into the programme of strategic maritime investment that enhances the potential of Poland on the Baltic Sea,” said Marek Gróbarczyk, the Minister of Maritime Economy and Inland Navigation.

“The investment project is a major component of our strategy designed to strengthen Poland’s energy security. The national transmission system has been gradually developed to shift from the east-west to the north-south supply. Apart from the extension of the Świnoujście-based PLN Terminal, the GAZ-SYSTEM Group has been progressing with the implementation of a number of strategic projects, such as the Baltic Pipe, North – South Corridor and the building of interconnectors linking Poland with Lithuania and Slovakia. Thus, we contribute to Poland’s energy independence and create foundations for a diversified gas market in this part of Europe,” said Piotr Naimski, the Secretary of State in the Chancellery of the Prime Minister and the Government Plenipotentiary for Strategic Energy Infrastructure.

“The implementation of the project will boost the annual re-gasification capacity of the LNG Terminal to approx. 8.3 billion cubic meters. Moreover, the extension will enhance the flexibility of its operation and storage. This will translate into a higher frequency of deliveries by LNG carriers, and improved security of natural gas supply to the national transmission system. Furthermore, the project will open up new services that develop the gas market in this part of Europe,” said Tomasz Stępień, the President of Board, Polskie LNG and GAZ-SYSTEM. 

“The development of a new jetty in the LNG Terminal is yet another stage of capacity building. It is expected to stimulate development of the Szczecin-Świnoujście port complex. The project follows the environmental policy and corresponds with the steadily growing demand for LNG in the maritime sector. Additionally, the project meets the expectations of ship operators. The Świnoujście-based terminal creates new opportunities for the port, city and the region. The investment may turn Świnoujście into the leader in LNG transhipment in the Baltic Sea Region,” said Krzysztof Urbaś, the President of Board, Szczecin and Świnoujście Seaports Authority.

Project benefits for the West Pomerania Region include new jobs, larger revenue from property tax, increased demand for outsourcing, as well as a potential growth of demand for hotels, restaurants and transport.

This year, in parallel to the tender for the contractor to develop the LNG Terminal in Świnoujście, the Open Season procedure has been launched to enable gas market players to express their interest in re-gasification and ancillary services. Already on 29 May this year, Polskie LNG and PGNiG signed a contract for services to be provided after the completion of the extension project. Additionally, the LNG Terminal Availability Procedure 2020 has also confirmed the need for the extension of the Terminal.

The extension of the Świnoujście Terminal is covered by co-financing of PLN 461 m from the Operational Programme Infrastructure and Environment 2014-2020, PRIORITY: VII, MEASURE: 7.1 under the project entitled “Extension of the functionality of the LNG Terminal in Świnoujście”.

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