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Gazprom refunds $1.5bn to Poland’s

PGNiG after settling price dispute

POLICY RUSSIAN state gas giant Gazprom has refunded after signing an annex to the Yamal contract,
$1.5bn to Poland’s state-run gas company which specifies the pricing formula and com-
PGNiG for overpayments of gas supplied pensation for past overpayments.
between 2014 and 2020, following a ruling by Polish President Andrzej Duda hailed the
an international arbitration court in the spring, news, saying it was “a result of an effective pol-
officials have said. icy” pursued by authorities “when it comes to the
The money has been transferred to the bank diversification of gas supplies.” The $1.5bn repay-
account of the company, CEO Jerzy Kwiecinski ment is for gas supplied to Poland after Novem-
announced on July 1. ber 1, 2014, when the pricing dispute erupted
The Arbitration Institute of the Stockholm between the parties.
Chamber of Commerce ruled in late March that Poland and Russia’s long-term gas supply
Gazprom had been overcharging PGNiG for gas, deal is also due to run out at the end of 2022, and
following a five-year legal dispute between the Warsaw has said it does not want to buy more
pair. Gazprom was ordered to adjust the pricing Russian gas after this point. Poland is developing
formula in its long-term supply agreement with additional import infrastructure to achieve this,
PGNiG, known as the Yamal contract, to reflect including a pipeline from Norway and an expan-
market prices in Europe. sion in its LNG regasification capacity. ™
The parties settled the dispute last month

NEWS IN BRIEF

completing these projects by the end of 2020. development of its small-scale LNG
AMERICAS Once fully operational, New Fortress aims distribution initiatives. The agreement
for these projects to contribute an additional between the two companies includes the
New Fortress Energy approximately $150mn toward the Company’s introduction of a new clean fuel source
through the production of Biomethane
Illustrative Annualised Operating Margin
significantly reduces future Goal from Committed Volumes. Liquefied Natural Gas (Bio-LNG).
The initial order involves the provision of
CEO and Chairman Wes Edens remarked:
LNG supply costs for 2020 “Our flexibility to opportunistically purchase two LNG production clusters. The first cluster
LNG at market prices completes our
contemplates two LNG production units
New Fortress Energy has entered into an transition from a development company to capable of producing 30 tonnes per day of
agreement with Centrica LNG Company an operating company that we expect will LNG from a mature gas field in the Brazilian
to terminate New Fortress’s obligation to generate significant operating margin and state of Bahia.
purchase any additional LNG from Centrica cash flow. We continue to advance a number The second cluster will be installed in the
for the remainder of 2020 in exchange for a of compelling new business opportunities and state of Sao Paulo, where it will capture and
payment of $105mn. As a result, New Fortress expect significant growth in 2020 and beyond. liquefy biomethane from landfills. This cluster
will now be able to purchase LNG in the In spite of the current COVID conditions, will have an initial production capacity of up
open market at prices that are significantly we have a very robust pipeline of additional to 15 tonnes of Bio-LNG per day. Operations
lower than the price previously agreed to with projects.” are expected to start in 2020.
Centrica. NEW FORTRESS ENERGY, July 06 2020 Golar Power is tapping new biomethane
As a result of facilities commencing sources to increase the share of local LNG
operations in Puerto Rico in addition to production and to accelerate the energy
Jamaica, New Fortress has made significant AMERICAS transition toward a cleaner energy chain with
progress toward achieving an Illustrative a lower carbon footprint. It also continues to
Annualised Operating Margin Goal from Golar Power partners with innovate with the development of proprietary
Committed Volumes of over $400mn on an technologies for LNG truck loading stations
annualised basis during the third quarter of Galileo and introduces Bio- as well as LNG filling solutions using Ship-
2020. We expect our annualised cash SG&A to-ISO-containers, that once distributed
and annualised cash interest payments to be LNG in Brazil through the road network, will deliver LNG to
approximately $80mn and $80mn respectively feed power stations, natural gas distribution
during the same period. Golar Power announces today that it companies, industries, as well as light and
In addition, the Company is currently has signed an agreement with Galileo heavy vehicles.
advancing projects in both Mexico and Technologies for the provision of LNG Eduardo Antonello, Golar Power CEO,
Nicaragua, with the goal of substantially liquefaction solutions to support the commented: “The agreement with Galileo

P14 www. NEWSBASE .com Week 27 10•July•2020