Integrated Annual Report 2015

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LNG Terminal

President Lech Kaczyński LNG Terminal

The undertaking of the construction of the LNG Terminal concerned the construction of the external port, the LNG regasification terminal and the Szczecin-Świnoujście gas pipeline. GAZ-SYSTEM acted as the coordinator of these projects in accordance with the Act of 24 April 2009 on investment projects associated with the development of re-gasification terminal for liquefied natural gas in Świnoujście.

Picture of Krzysztof Wiśniewski Picture of Krzysztof Wiśniewski

GAZ-SYSTEM, in designing the Construction Coordination System for the LNG Terminal, paid special attention to the creation of cooperation conditions according to the principles of professionalism and partnership which, in our opinion, formed the basis for ensuring efficiency and high standards of cooperation – the foundation for the effective coordination of such a complex project as the development of the LNG Terminal. Thanks to the commitment of all parties to the System, representing different organisational cultures and business goals, who had confidence in joint action and filled the recent years with systematic and professional work, we are effectively achieving the key coordination goals.

Krzysztof Wiśniewski Director of the LNG Division, GAZ-SYSTEM

The division of tasks among individual entities involved in the construction of the LNG Terminal in Świnoujście:

Tasks of GAZ-SYSTEM:

  • connection of the terminal to the national transmission network (Świnoujście-Szczecin gas pipeline)
  • gas transmission pipelines
  • coordination of the LNG terminal construction project

Tasks of Polskie LNG:

  • construction of the LNG terminal
  • pipelines for collection of liquefied gas from tankers
  • LNG tanks
  • regasification installations

Tasks of Maritime Office in Szczecin:

  • breakwater
  • fairway and swing
  • navigation signs
  • fairway expansion
  • reconstruction of existing breakwater

Tasks of Szczecin and Świnoujście Seaports Authority:

  • berth
  • infrastructure for hooking up installations for gas sendout and seawater intake

The coordination system was developed and implemented in close cooperation with the Project partners and stakeholders. This enabled smooth synchronisation of actions between the four Sub-Projects:

  1. The LNG Terminal which includes the following components: facilities for LNG unloading from the ship, two tanks with the capacity of 160,000 m³ each and LNG re-gasification lines together with custody transfer systems for gas sendout to the pipeline connecting the Terminal with the national transmission system. The project is executed by Polskie LNG.
  2. Connection pipeline (approx. 6 km) and transmission pipeline (approx. 74 km), as well as the infrastructure necessary for their operation in the territory of the Zachodniopomorskie Voivodeship. The project was implemented by Gas Transmission Operator GAZ-SYSTEM.
  3. The project of construction of a breakwater on the Baltic Sea, covering in particular: the fairway, swing as well as necessary dredging works in Świnoujście. The project was executed by the Maritime Office in Szczecin.
  4. The construction of port infrastructure for the unloading of LNG vessels, comprising a berth complete with mooring, fender and navigation systems as well as infrastructure for fitting installations for gas transmission and collection of water from the sea. The project was executed by The Szczecin and Świnoujście Seaports Authority based in Szczecin.

In 2015, the GAZ-SYSTEM together with the partners concentrated on efforts aimed at achieving Full Operational Capability of the Terminal. On the coordinator's initiative, the definition of the Full Operational Capability (FOC) was established together with the associated detailed Checklist which covered 258 tasks to be executed the following areas: maritime and berth operations, LNG Terminal, Świnoujście–Szczecin gas pipeline, public administration and Terminal use (currently the Terminal is used by PGNiG).

By 31 December 2015, a total of 229 out of those 258 FOC tasks were fulfilled, which represents 89% progress.

On 11 December 2015, a Q-flex LNG carrier arrived at the external port in Świnoujście which delivered the first cargo of approximately 205 thousand m³ of liquefied natural gas for the LNG Terminal. A part of this volume was used for the commissioning of the LNG Terminal in Świnoujście, and specifically to cool down the unloading pipelines and LNG storage tanks, and the commissioning of low-pressure pumps and the entire process part of the terminal. The remaining LNG volume (the majority of the cargo) was regasified and sent out to the national transmission network, and then to customers (such as Zakłady Chemiczne Police).

On 8 February 2016, the second Q-Flex LNG carrier was unloaded at the Terminal. A part of this cargo was used to conduct performance tests, including the so-called guaranteed parameters tests. At the same time, regasified LNG was delivered to the network and transported to customers. The investment will be ready for the acceptance of commercial LNG deliveries in the middle of 2016.

Once fully operational, the LNG Terminal will enable the diversification of gas supply to Poland, natural gas imports in the form of LNG from virtually any direction of the world and the supply of 5 bcm of gas per year to the Polish transmission system. In the event that a decision is taken to expand the Terminal, the capacity of the Terminal may be increased to 7.5 bcm , which will correspond to approximately 50% of the current annual demand for gas in Poland.

Supply chain of Polskie LNG

The global LNG trade takes place in a cycle known as the “LNG supply chain” which consists of four steps:

  1. step one is concerned with the production of natural gas and its transportation to a liquefaction terminal,
  2. step two – liquefaction, storage and loading to a means of transport,
  3. step three – transport to a regasification terminal,
  4. step four – re-gasification and export to the system.