Poland’s Gaz-System Secures $593 Million Loan for Floating LNG Terminal, 155-Mile Pipeline

Gaz-System will receive a $593 million EU-backed loan to build a 155-mile pipeline linking Poland’s first floating LNG terminal in Gdansk to the national gas network. The project is expected to be completed by 2028.

(Reuters) — Polish pipeline operator Gaz-System will receive a 2.2 billion zlotys ($593 million) loan from state bank BGK to finance the onshore segment of Poland's first floating storage and regasification unit near Gdansk, BGK said on June 18.

The loan, sourced from European Union funds, will finance construction of a 250-km (155-mile) pipeline that will connect the terminal to the core of Poland's gas network, BGK Deputy President Marta Pustula told reporters. The loan will be repaid over 25 years, Pustula added.

The floating storage and regasification unit will be based in the Bay of Gdansk and is expected to be completed in 2028.

In January, Gaz-System completed the expansion of its LNG terminal in Świnoujście, increasing its regasification capacity to 8.3 billion cubic meters, which corresponds to nearly 50% of the annual gas demand of domestic consumers.

($1 = 3.7112 zlotys)