Poland, Sabine area group make pact: Let’s talk

Published 12:24 pm Wednesday, March 21, 2018

By Ken Stickney

ken.stickney@panews.com

U.S. and Polish liquefied natural gas enthusiasts opened dialog Tuesday between energy interests in the Sabine Pass area and in that Eastern European country, which intends to become an energy hub for its region.

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Michal Kurtyka, undersecretary of state for Poland’s Ministry of Energy, signed a joint declaration establishing regular dialog between energy interests there, such as Polskie LNG, and various Port Arthur area entities.

Signing for the Port Arthur interests were Randall Reese, general manager of the Sabine-Neches Navigation District, Larry Kelley, director of the Port of Port Arthur and Bill McCoy, president and CEO of the Greater Port Arthur Chamber of Commerce.

Poland has signed an agreement with Cheniere for nine shipments of LNG over the next five years, and has received the first shipment. Although that pact is limited in size, it has established a record of cooperation that appeared to be important to interests on both sides of the Atlantic.

“Our operators can work together, exchange best practices,” Kurtyska said.

He said LNG represents about 5 percent of Polish energy resources, but will move quickly to 10-20 percent as Poland attempts to diversify its sources of energy.

Right now, he said, imported LNG is consumed internally, but Poland, which is capable of importing LNG on the Baltic Sea, is seeking to become the principal distributor — a hub — for LNG in central and Eastern Europe within the next five years.

Kurtyka said Poland’s “ambitious plan” includes moving LNG to landlocked counties like Slovakia and the Czech Republic as well as Ukraine.

Europe to some degree is shifting its sources for natural gas away from Russia, which, because of its aggression against Ukraine, has disrupted the flow of energy in Europe. Ukraine was an exporter of natural gas before the Russians annexed Serbia, part of Ukraine.

Fred Hutchison, president and CEO of Washington-based LNG Allies, trade association and industry advocates, said Polish interests in the Sabine Pass represent steps toward energy independence away from Russia.

“They’re building their own pipelines on the North Sea and a terminal on the Baltic,” he said.

The declaration noted that the terminal represented an “essential element in Poland’s national strategy to expand and diversify its sources of natural gas.”

Along with imports from the U.S., Poland also imports gas from Qatar and Norway.