Centrica has signed a mid-term LNG deal with Polish state-run gas monopoly PGNiG, under which the UK-based company will re-deliver LNG cargos bought from the under-construction Sabine Pass LNG export project’s train-5 in the US. The parties have not revealed the volumes and prices agreed under the contract.
PGNiG will receive nine LNG shipments in 2018-2022, the Polish company said, adding that the shipments will be uploaded in the US LNG project and be delivered to Poland’s Swinoujscie terminal on the Baltic Sea. “This agreement is the first of its kind in PGNiG’s planned portfolio of medium-term LNG agreements. Most of these LNG supply agreements will be dedicated to the gas markets of Poland and other Central European countries in order to increase the energy security of this region, which has historically been dominated by Russian gas.”
So far, PGNiG has only one supply deal signed with Qatargas for importing 2 MMT/Y of LNG until 2034.
Meanwhile, market sources report that Centrica was looking for re-selling the US LNG as it is too expensive to be affordable in the UK market. According to the US DOE’s report, since its inauguration in February 2016, the US sole LNG exporter (Sabine Pass) has delivered just 0.5% of its cargoes to the UK as the US LNG cargoes have arrived mostly in smaller, less-liquid markets like Latin America and southern Europe.

And, RT reported that Poland tackles 'Russian gas domination' by paying double for American LNG. “The signing comes despite warnings from European energy companies that American LNG is twice as expensive as Russian pipeline gas.”
PGNiG’s plan is not to extend a long-term natural gas deal with Russia’s Gazprom when it expires in 2022 and replace the supplies from the east with deliveries from Norway and via the LNG terminal, Reuters reported, adding that Poland consumes around 16 BCM/Y of gas.
Backgrounds:

On 25 Mar. 2013, Centrica has entered into an agreement with Cheniere Energy to purchase 91,250,000 MMBTU/Y (1.75 MMT/Y) of LNG from the Sabine Pass liquefaction project under a 20-year contract, with the option for a 10-year extension. The target date for first commercial delivery is September 2018.
“Under the terms of the agreement, Centrica will purchase LNG on a ‘Free on Board’ (FOB) basis, giving it destination rights for the cargoes, for a purchase price indexed to the Henry Hub natural gas price plus a fixed component. Centrica will export gas from the fifth LNG train at Sabine Pass, on which preliminary engineering work has already begun,” Centrica has said in a statement.
It was reported that Centrica will pay Cheniere a 15% premium on HH gas prices for each shipment, plus a set fee of $3/MMBTU. At current HH gas prices, Centrica could import Sabine project’s LNG at less than $US 10/MMBTU.