Poland Eyes Expansion of Gdańsk LNG Terminal, Doubling Capacity Amidst Shifting European Energy Landscape
Gdańsk, Poland – Poland is considering a significant expansion of its liquefied natural gas (LNG) terminal in the bay of Gdańsk, possibly doubling its regasification capacity to 10.6 billion cubic meters of gas per year. The move comes as the country seeks to bolster energy security and capitalize on growing regional demand fueled by sanctions on Russian gas and a broader push for supply diversification.
Gaz-System, the Polish gas transmission operator, originally designed the first floating storage and regasification unit (FSRU-1) with future expansion in mind. According to the company, launching FSRU-1 will establish a functioning quay equipped with LNG reception installations, an undersea gas pipeline, and a breakwater. Adding a second unit (FSRU-2) would then require only “additional technological installations” for operation.
“When designing FSRU-1,a potential need to add a second unit was foreseen,which would be moored at the same quay – so its launch would be easier and faster,” Gaz-System emphasized. Both FSRU units would connect to shared technological installations on the quay for receiving LNG from carriers and transporting regasified gas via a common undersea pipeline to the national network. Gas carriers would be able to moor side-by-side to the terminal, directing LNG to either FSRU unit.
The initial investment for FSRU-1 is estimated at approximately PLN 4.5 billion (roughly $1.1 billion USD). the cost of acquiring and connecting FSRU-2 will be determined through analyses conducted in preparation for a binding open season procedure planned for next year.
The expansion plans are unfolding against a backdrop of fluctuating European gas demand.While some analysts, like the Ember think tank, point to a 20% decrease in EU gas consumption between 2021 (410 billion cubic meters) and 2024 (330 billion cubic meters) due to the accelerating energy transition, gaz-System argues that current geopolitical realities necessitate increased LNG infrastructure.
“Due to the dynamically changing geopolitical environment in our region of Europe, we notice an increased need to ensure diversification of gas supplies in the countries neighboring Poland,” Gaz-System stated. “In addition,the need to increase the availability of LNG supply sources is indicated by the growing importance of gas as a transition fuel in the energy transformation process and the need to ensure greater versatility of supply,reported by the professional energy sector.”
The decision to proceed with the expansion will be a crucial one for Poland,balancing long-term energy transition goals with immediate security concerns and regional demand.
(Przemysław ciszak, journalist of money.pl, contributed to this report.)
