What goes on in Poland on the 24th of June.
PGNiG wants to extract gas in Ukraine, and perhaps deliver it to Poland
PGNiG extract gas in Ukraine in cooperation with local partners. It may reach Poland through interconnectors indicated by this company as one of the sources of supply that allows to meet the growing demand for this fuel.
The Conference of the Heat and Gas Forum under the patronage of BiznesAlert.pl was an opportunity to discuss the sources of gas supplies to Poland, which needed more and more gas along with the energy transformation. The head of PGNiG spoke, among other things, about supplies via connections with neighbors, including Ukraine.
– We have a signed letter of intent with the Ukrainian Naftogaz, which provides for joint exploration and ultimately also the extraction of hydrocarbons from Ukrainian fields. We have signed contracts that allow us to use Ukrainian warehouses and gas transmission pipelines – admitted the president of PGNiG Paweł Majewski in a commentary for BiznesAlert.pl.
– We are planning a capital investment and taking up shares in Kartpatgazwydobwanie company, which has a Bybliwska exploration and production license, directly at the border with Poland. This area is an extension of the geological structures of the largest Polish natural gas deposit, Przemyśl. So we have a good prospect of exploration success and then mining. Gas from own fields is always the cheapest – summed up Majewski.
Half of the Baltic Pipe capacity in October 2022 and full capacity after the Yamal contract
It is still not known how much of the Baltic Pipe capacity will be available at the original date, i.e. in October 2022, however, the Yamal contract with Gazprom is valid until the end of the year, when it is to be fully available.
The planned capacity of the Baltic Pipe gas pipeline is 10 billion cubic meters, of which the Polish company PGNiG has reserved 8.2 billion cubic meters annually by auction. Poles want to use part of it to supply their own gas produced on the shelf. By taking over the assets of INEOS, they want to achieve extraction of 2.5 billion cubic meters annually.
However, the need to issue a new environmental permit for the onshore Baltic Pipe section in Denmark forced the Danish investor of this project, Energinet, the operator of the transmission gas pipeline, to postpone the completion date from October to December 2022. Part of the capacity of this pipeline is to be available on the original date. According to BiznesAlert.pl, it may be about half, or 5 billion cubic meters.
Poles remain calm because Norwegian gas to replace the Yamal contract with Gazprom ends in December 2022, and not in October, when the new gas year in the industry begins. This means that they will be forced to pay part of the volume contracted in Russia under the take or pay clause by the end of the year. Deliveries from Norway will be able to start in full force after the end of this contract.