68th International Atlantic Economic Conference

October 08 - 11, 2009 | Boston, USA

LNG Terminal in Swinoujscie – Diversification of Sources of Natural Gas Supply in Poland

Saturday, October 10, 2009: 4:30 PM
Dariusz Zarzecki, Professor , Department of Investments and Business Appraisal, The University of Szczecin, Szczecin, Poland
In the era of dynamically increasing relevance of energy in each economy of the globe, one of the major determinants of national security is to have diversified sources of energy supply. The most recent method to achieve that has been the construction of LNG (Liquefied Natural Gas) terminals.
An LNG terminal is an installation which enables import and regasification of liquefied natural gas. LNG is a fuel produced from natural gas in the process of its purification and condensation by means of pressurisation and cooling to the temperature of minus 160 Celsius degrees (minus 270 Fahrenheit degrees). The liquefaction provides a clear, odourless and colourless fuel, which is neither toxic nor corrosive. It consists mainly of methane with low concentration of other carbohydrates.

Owing to its unquestionable qualities, such as high energetic value combined with a relatively low cost and environment-friendliness, the natural gas has recently become a popular source of energy in the global economy. In order to secure its supply, many countries decide to construct LNG terminals. At present, there are approx. 30 liquefaction terminals in the world, and around 50 import and regasification terminals. Further 40 liquefaction terminals and 60 regasification terminals are planned to be constructed. The EU itself can boast 13 LNG terminals at the moment.

The paper discusses the current and future role of LNG terminals in the diversification of the sources of natural gas supply in the European Union and Poland. The first part analyses the tendencies in the global market for energy resources and current forecasts as to that market’s development. Next, an attempt is made to determine the relevance of LNG terminals to the diversification of the sources of natural gas supply with emphasis on the case of the LNG terminal in Œwinoujœcie. At the end of the paper a conclusion has been reached that LNG terminals seem to be the right solution under contemporary economic and political conditions.