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Poland signs 5-year deal for LNG from Sabine Pass

Polish Oil and Gas Co. signed a deal to receive up to nine LNG cargoes from Cheniere Energy Inc.'s Sabine Pass terminal in Louisiana, a move the state-run company said is part of Poland's efforts to reduce its reliance on Russia's Gazprom.

The five-year contract, signed between Polish Oil and Gas Co., or PGNiG, and Sabine Pass customer Centrica Plc, will begin in 2018, according to a statement from the Polish Embassy in Washington, D.C.

"This agreement is the first of its kind in PGNiG's planned portfolio of medium-term LNG agreements," PGNiG CEO Piotr Wozniak said in the statement. "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."

The President Lech Kaczynski LNG terminal in Swinoujscie, Poland, received its first cargo of U.S. LNG in June, a shipment PGNiG heralded as a product of its recently opened London office. Weeks later while on an official visit to Poland, President Donald Trump said the first long-term LNG contract between the countries was capable of being signed "within the next 15 minutes."

U.K.-based Centrica has a 20-year contract with Sabine Pass for LNG from a fifth liquefaction train under construction. Under the agreement, signed in March 2013, Centrica will purchase roughly 1.75 million tonnes per annum of LNG once train 5 starts producing. While Cheniere has said it anticipates train 5 officially entering service in August 2019, a Kinder Morgan Inc. unit building a pipeline to the facility recently told federal regulators that the liquefaction train was progressing ahead of schedule.