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Poland signs long-term deal with Qatargas

Poland signs long-term deal with Qatargas

Poland signed a $550 million contract with Qatargas on Monday to receive 1.5 billion cubic meters of natural gas per year over 20 years, officials said.
"It is the first long-term contract since 1993 which increases our energy security in real terms," Polish treasury minister Aleksander Grad said.
Grad said the deal with the Qatargas Operating Co. Ltd. will take effect in 2014, when a planned gas port in Swinoujscie, on Poland's Baltic Sea coast, will be operational.
Poland would import 1.5 billion cubic meters of liquefied natural gas per year from Qatargas, with the option to boost supplies. The deal was signed in Qatar on Monday by representatives of Qatar's government and PGNiG, Poland's state-run gas monopoly.
Grad said the deal, announced in Doha, Qatar, will make it easier for Poland to weather future gas shortages.
"However, it doesn't mean that our energy security is guaranteed," Grad added.
Poland is trying to increase its energy security after suffering a gas shortage last winter during a Ukrainian-Russian pricing dispute. Russia cut off gas supplies that caused hardship throughout central and eastern Europe and the Balkan countries.
The deal is "an unusually important step toward diversifying gas supplies to Poland," PGNiG spokeswoman Joanna Zakrzewska said in a statement.