Poland Will Discuss U.S. Liquefied-Gas Exports, Minister Says
Poland, which is building a liquefied natural-gas terminal to lower dependence on fuel from Russia, is interested in shipments from the U.S., according to Ilona Antoniszyn-Klik, the nation’s deputy economy minister.
U.S. energy producers plan to sell gas overseas after advances such as horizontal drilling and hydraulic fracturing led to record production and a supply glut. Poland buys about two-thirds of its gas from Russia’s OAO Gazprom (GAZP), and an LNG terminal built on the Baltic Sea coast should be ready by 2014.
“We consider all sources of energy, because we want to have an energy mix which consists of different suppliers,” Antoniszyn-Klik said during an interview at Bloomberg’s Washington office yesterday. Buying from the U.S. “will be a possible area of cooperation.”
Poland may become another advocate for U.S. exports of the fuel. Japan’s Prime Minister Yoshihiko Noda raised the issue of U.S. gas exports during a meeting with President Barack Obama in Washington on April 30. Antoniszyn-Klik plans to discuss the issue today with the U.S. Commerce Department.
Cheniere Energy Inc. (LNG), based in Houston, won U.S. approval in April to export 2.2 billion cubic feet of gas a day from a $10 billion terminal in Louisiana. Shipments may start as early as in 2015. Clients are BG Group Plc (BG/) in Berkshire, U.K., Barcelona-based Gas Natural Fenosa, GAIL India Ltd. (GAIL) and Korea Gas Corp. (036460)
Other investors, such as Sempra Energy (SRE) with Mitsubishi Corp. (8058) and Mitsui & Co. (8031) and Freeport LNG in partnership with Macquarie Group Ltd. (MQG), need federal approval, which has been delayed as Democratic lawmakers including Representative Edward Markey from Massachusetts and Senator Ron Wyden of Oregon, raised concerns that sales overseas might increase prices for U.S. consumers.
Poland pays about $500 per 1,000 cubic meters, according to Treasury Minister Mikolaj Budzanowski. That puts the price at about $13.80 per million British thermal units.
The U.S. gas price have declined more than 50 percent in the past 12 months, to $2.274 per million Btu on the New York Mercantile Exchange.
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