A new liquefied natural gas plant in Poland could help cut Europe’s dependence on Russian supplies, according to a new report.
Recent research by Ernst & Young suggests the 2.8billion złoty (over £550million) LNG plant in Polish seaside city Świnoujście can become a strategic energy hub for Northern and Central Europe, including Slovakia, Lithuania, Latvia, Estonia and Finland – all of which receive their gas from Russia.
The consulting firm believes the plant – due for opening mid-2014 – will allow for a more diverse supply chain and lower gas prices for the whole region, including Scandinavia.
A new pipeline network would need to be built to export LNG from Świnoujście to the Chech Republic, Danemark or Finland, however.
“The plant will significantly boost our negotiating position in terms of key contracts on importing natural gas, but it can help other countries as well,” claims Aleksander Gabryś, Energy manager at Ernst & Young.
The new terminal will receive gas via the sea – Katar being the main supplier – and the initial output is estimated at 5billion m3 a year – equivalent of 1/3 of the demand for gas in Poland.
However, the plant could then increase its output by a half – to 7.5billion m3 a year, experts suggest.
This will be the only installation of this size in North and Eastern Europe and one of the biggest ones on the continent.
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