US natural gas might be approx 20% less expensive than Russian alternative.
The Polish oil and gas giant, PGNiG, has announced that it will be signing a contract for deliveries of Liquified Natural gas from the US. The company signed two contracts in October for around 1 million tonnes of LNG per year. Back in October, the CEO of the company Piotr Wozniak, revealed that the LNG delivered from the US will be about 20% cheaper than the gas Poland is currently purchasing from Russia. Poland has been tied to a long-term gas contract with Russia which is due to expire in 2022. Until know, the country has been forced to pay prices significantly higher than Russia’s other clients. The clear explanation is that Russia bases its gas prices not on market-economy factors, but rather uses its gas exports as a tool for its foreign policy.