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Poland's PGNiG 2Q spot LNG purchases fall

  • Märkte: Natural gas
  • 20.08.20

Poland's state-controlled PGNiG bought fewer spot LNG cargoes in the second quarter than a year earlier.

The firm bought three spot LNG cargoes in April-June, down from four a year earlier.

Polish domestic consumption slipped on the year in April, before rising in May-June when the firm's three spot cargoes were delivered. Strong demand in May — when two out of the three were unloaded — was in contrast to much of northwest Europe, where lockdowns to contain the Covid-19 pandemic stayed in place amid high infection levels (see demand graph).

Poland was less affected by the virus, and the European Commission forecast in May that it would have the shallowest recession in the EU this year. This may have added to demand at a time when LNG suppliers were otherwise short on options for selling cargoes prior to large-scale cancellations of US loadings scheduled for June.

Spot US LNG deliveries climbed in the second quarter from a year earlier to a number of countries outside northwest Europe, including Lithuania, Greece and Turkey (see US receipts graph).

PGNiG's 10 spot LNG purchases in the first half of the year were still up from six a year earlier.

And the firm received 21 cargoes overall in January-June, up from 16 a year earlier. PGNiG has long-term agreements with Qatargas and US producer Cheniere, and also buys on the spot market.

The higher proportion of spot cargoes lifted the diversity of Poland's LNG supply mix in the first half of this year compared with previous years. The firm received its first cargo from Trinidad and Tobago in March, and also booked spot sales from Norway (see data and download).

But most spot purchases continued to be from the US.

LNG has increased its share in Poland's supply mix in recent years. It was the highest for any quarter so far at 30.2pc in the second quarter (see imports graph). Polish LNG imports as a proportion of consumption typically peak around the second quarter.

Quicker LNG receipts may also have allowed the firm to add more to storage, including in Ukraine, where the firm says it stores gas as a "back-up". Assuming PGNiG owns all of Poland's stocks, the firm may have had inventories outside Poland of around 174mn m³ as of 1 July.

More US spot supply to eastern Europe '000 m³

LNG imports make up more Polish demand %

Poland stays y-on-y demand positive GWh/d

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