ORLEN Group to Supply Additional 1 bcm of Self-Produced Gas via Baltic Pipe
ORLEN Group to Supply Additional 1 bcm of Self-Produced Gas via Baltic Pipe

ORLEN Group to Supply Additional 1 bcm of Self-Produced Gas via Baltic Pipe

  • 12-Apr-2024 3:04 PM
  • Journalist: Peter Schmidt

The ORLEN Group has boosted the amount of natural gas conveyed to Poland from its proprietary production facilities in Norway by over 30%, resulting in an extra 1 bcm annually. Gas extracted from Norwegian fields by PGNiG Upstream Norway already represents roughly half of ORLEN's total Baltic Pipe capacity allocation.  The rise in gas supply to Poland stems from the recent acquisition of KUFPEC Norway, with all gas production attributed to it now directed exclusively to Poland since April 1, 2024.

Witold Literacki, acting CEO and President of the Management Board of ORLEN, emphasizes the significance of the Norwegian Continental Shelf as a pivotal market in securing the natural gas essential for powering Poland's economy, fostering its growth, and meeting customer demand. ORLEN is actively working to maximize the proportion of its own gas within the total volumes imported to Poland from Norway. The acquisition of KUFPEC Norway underscores this commitment, facilitating a significant increase in ORLEN's gas production on the Norwegian Continental Shelf by over 1 bcm annually. Since April 1, every additional cubic meter extracted has been exclusively allocated to Poland, enhancing the energy security of gas consumers while further optimizing gas procurement costs.

Following the acquisition of KUFPEC Norway, PGNiG Upstream Norway within the ORLEN Group (PUN) has obtained ownership stakes in five productive fields: Gina Krog, Sleipner Vest, Sleipner Ost, Gungne, and Utgard. Since PUN already held interests in all these assets, it was able to realize additional synergies, both operationally and financially.

The acquisition of KUFPEC Norway has increased ORLEN Group's Norwegian gas production by 1 bcm, reaching an annual output of 4 bcm. This achievement signifies a significant step towards the company's ambitious target of surpassing 6 bcm annually on the Norwegian Continental Shelf by 2030.

The gas extracted is sent to Poland through the Baltic Pipe, for which the ORLEN Group has reserved capacity exceeding 8 bcm annually. By channeling the extra gas volumes obtained from the acquisition of KUFPEC Norway to the Baltic Pipe, PGNiG Upstream Norway's output could account for approximately half of ORLEN's total gas import volume from Norway, utilizing the Baltic Pipe's maximum reserved capacity on an annual basis.

ORLEN is a vertically integrated conglomerate with a strong presence in Central Europe. We provide energy and fuel to more than 100 million Europeans, with our advanced products reaching customers in over 100 countries across six continents. Our operations span both the upstream and downstream sectors of the oil and gas industry, as well as power generation and distribution. At the core of ORLEN's mission is our commitment to spearheading the regional energy transition. We are dedicated to embracing innovative, clean, and sustainable technologies, with a particular focus on low- and zero-emission power generation. This proactive approach aligns with ORLEN's strategic objective of achieving emission neutrality by 2050.

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