On 15 July 2010, with the participation of the Minister of Treasury, Mr. Aleksander Grad, the contract for construction of a liquefied natural gas (LNG) terminal in Świnoujście was signed between the investor – the company Polskie LNG S.A. and the contractor – the consortium Saipem S.p.A. (Italy) – Saipem SA (France) – Techint Compagnia Technica Internazionale S.p.A. (Italy) – Snamprogetti Canada Inc. (Canada) – PBG SA (Poland) – PBG Export Sp. z o.o. (Poland). The ceremonious event was attended by diplomats, members of the parliament, senators, public administration officials, as well as representatives of banks and the media.

The contract was signed on behalf of the investor by the CEO of Polskie LNG S.A. – Mr. Zbigniew Rapciak and for the contractor by Mr. Pierre Berger of Grupa Saipem, Mr. Paolo Bigi of Techint and Mr. Tomasz Woroch of Grupa PBG. The value of the contract is PLN 2,946,559,860 gross (PLN 2,415,213,000 net).

“The conclusion of the contract – and prior to that the adoption of a Special Act regulating and simplifying procedures related to the construction of the terminal – as well as obtainment of required environmental decisions and building permit confirm that the endless talk of the need to diversify gas sources is over as today it has become reality. The construction of the LNG terminal will give Poland more independence in the selection of a natural gas supplier. The terminal will allow us to receive gas delivered by sea and to execute contracts signed with Qatar. The investment is the first project of this kind in this part of Europe,” said Aleksander Grad, the Minister of Treasury.

The consortium’s task is to construct the LNG terminal w Świnoujście and release it for use by 30 June 2014. The companies making up the winning consortium already have experience in constructing LNG terminals around the world, among others in Canada (Canaport LNG), USA (Freeport), China (Terminal Guandong), South Korea (Pyeongtaek LNG), Belgium (Zeebrugge), Spain (Bilbao), Turkey (Marmara LNG) and France (Fos Cavaou LNG).

“The LNG terminal will allow us in the future to receive by sea as much as 7.5 bn cubic meters of gas, which will be roughly 50% of Poland’s annual need for natural gas. The terminal means not only more independence, but also new professional development opportunities, as it will give an impulse for the creation in Szczecin and Świnoujście of a European LNG Training Centre. The centre will train highly qualified professionals that will be employed in LNG terminals in Poland and abroad,” said Zbigniew Rapciak, the CEO of Polskie LNG S.A. “I would like to thank all companies that took part in the tender for their professional offers. My gratitude also goes to all employees and partners of PLNG for their commitment in the execution of this project,” added Rapciak.

The construction of the LNG terminal was deemed by the Polish Government as an investment strategic to the country’s energy security. The terminal will be constructed in Świnoujście on a location designated for port development. It will receive each year up to 5 bn cubic meters of natural gas (with possible extension to 7.5 bn cubic meters). The LNG terminal in Świnoujście is the first investment of this kind in Poland and in this part of Europe.

“The LNG terminal in Świnoujście is one of the key investments under a large scale investment plan within the scope of gas infrastructure development in Poland delivered by GAZ-SYSTEM S.A. The contract signed today ends formal preparations and marks the beginning of the construction phase of the project. Construction of the LNG terminal and new gas pipelines and cross-boarder connections delivered by our company will in the future allow other countries from East and Central Europe to access the global market of liquefied natural gas using Polish industrial infrastructure,” said Jan Chadam, CEO of GAZ-SYSTEM S.A. – project coordinator.
Commencement of construction is planned in the second half of 2010. The project will be completed on 30 June 2014.
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Polskie LNG S.A. is a special purpose vehicle established for the construction and operation of the LNG terminal in Świnoujście. The company Polskie LNG was created in 2007 as part of the strategy to diversify supplies of gas to Poland. It is owned by the Gas Transmission Operator GAZ-SYSTEM S.A. – a state-owned company.

On 6 August 2009, the company Polskie LNG S.A. commenced the selection procedure for the General Contractor. On 30 September 2009, eight applications were filed from entities comprising in total 25 companies from 9 countries. On 9 November 2009, three entities were admitted to the final stage: the consortium Saipem S.p.A. (Italy) – Saipem SA (France) – Techint Compagnia Tecnica Internazionale S.p.A. (Italy) – Snamprogetti Canada Inc. (Canada) – PBG SA (Poland) – PBG Export Sp z o.o. (Poland); the consortium Tecnimont S.p.A. (Italy) – Polimex Mostostal SA (Poland) – Sofregaz SA (France) – Vinci Construction Grands Projets Sas (France) – Entrepose Contracting SA (France) and the consortium Daewoo Engineering & Construction Co Ltd. (Korea) – Korea Gas Corporation (Korea) – Daewoo Engineering Company (Korea). On 4 February 2010, all three consortia submitted initial offers, and on 21 June 2010 final offers including prices.

On 24 June 2010, the company Polskie LNG S.A. selected the entity that will construct the LNG terminal in Świnoujście (the General Contractor). The winning bidder is the consortium Saipem S.p.A. (Italy) – Saipem SA (France) – Techint Compagnia Tecnica Internazionale S.p.A. (Italy) – Snamprogetti Canada Inc. (Canada) – PBG SA (Poland) – PBG Export Sp z o.o. (Poland), which placed the winning bid with the lowest total price (PLN 2,946,559,860 gross).

Entities participating in the tender were entitled to file appeals, if any, by 5 July 2010. No appeals were filed. The tender was executed under the Special Act of 24 April 2009 on Investments in the Regasified Liquefied Natural Gas Terminal in Świnoujście. The Special Act was prepared on the basis of EU Directives, which provide that procurements must made in a fair and transparent manner – respecting the rights of tender participants and fair competition – via an open, fair, transparent and non-discriminatory procedure.