In the second quarter of 2019, PKN ORLEN earned LIFO-based EBITDA of PLN 2.7bn, an increase of more than PLN 600m y/y. Earnings improved despite a more challenging macroeconomic environment, affected chiefly by the declining Brent/Urals differential (down by USD 1.7/bbl y/y). The Group’s LIFO-based EBITDA was driven mainly by robust performance in Downstream and Retail, of nearly PLN 2bn (up by over PLN 400m y/y) and PLN 859m, respectively. Although oil supplies via the Druzhba pipeline were temporarily halted, the Group’s crude throughput in the second quarter reached 8.3 million tonnes, resulting in a 9pp y/y increase in refinery runs. This was achieved largely on the back of consistent efforts to diversify oil supply sources, giving the Group more flexibility in its procurement decisions. The high processing volume coupled with y/y growth in product consumption translated into a 2% y/y increase in sales.
Novatek seals Arctic LNG 2 deal with partners and subcontractor
Russia’s largest private natural gas extractor and liquefied natural gas (LNG) producer Novatek has entrusted a new subcontractor with building gas liquefaction facilities for Arctic LNG 2, its second LNG project to be developed in the Arctic. The Russian company inked a $7.6 billion deal with TechnipFMC, a global leader in subsea, onshore/offshore, and surface projects. Both parties to the agreement managed to sign the contract as Novatek had been given access to additional sources of financing, which resulted from its successful attempt to form a group of companies holding interest in investing in the Arctic LNG 2 project.
Sobolewski: Is it too late for nuclear energy in Poland? (POLEMICS)
At the Civic Coalition Program Forum held recently in Warsaw, the prominent Civic Platform Member of European Parliament (MEP) on one of the panels stated that „It is too late for the nuclear in Poland. Energy from the nuclear for 10-12 years is too distant perspective”. Well, I can ask a question for whom this perspective is too far away for a MEP or for my country? – says Dr. Józef Sobolewski*.
Polish Briefing: The energy strategy is waiting for the NECP
What goes on in Poland on the 7th of August.
Gustorzyn gas copressor station with location decision
On July 19, 2019, the Voivode of the Kujawsko – Pomorskie province issued a decision on determining the location for the construction of the Gustorzyn Gas Compressor Station, together with the infrastructure necessary for its operation, in the area of Gustorzyn, in the commune of Brześć Kujawski. The gas compression station in Gustorzyn is an important element of the project to connect the transmission systems of the Republic of Poland and the Republic of Lithuania (GIPL) and the Baltic Pipe Project.
OSW: Internal tensions in Georgia and a new crisis in relations with Russia
The protests in Tbilisi which have been ongoing since 20 June have revealed the potential for discontent in Georgian society; the public has been disillusioned by the country’s bad economic and social situation (high unemployment, rising prices, and the weakening of the national currency), and the broken promises of the Georgian Dream-Democratic Georgia (GD) party, which has been ruling for nearly seven years. The demonstrations have also exacerbated the political struggle between GD and the increasingly strong opposition, dominated by the United National Movement (UNM) party of former President Mikheil Saakashvili, and European Georgia (EG), which was established after a split in the UNM – writes Wojciech Górecki, analyst at Ośrodek Studiów Wschodnich (OSW).
Will Trump announce sanctions against Nord Stream 2 in Warsaw?
US President Donald Trump will visit Warsaw. This is a great opportunity to announce new sanctions against Nord Stream 2, which, however, will not be proof of success, but the failure of transatlantic policy – writes Wojciech Jakóbik, editor-in-chief of BiznesAlert.pl.
First cargo of US LNG under long-term deal between PGNiG and Cheniere arrived in Poland
The first cargo of liquified natural gas under the long-term contract between PGNiG and US LNG provider Cheniere Energy arrived today at the President Lech Kaczyński LNG Terminal in Świnoujście. The long-term contract, which was signed in November of 2018, will total approximately 39 bcm of natural gas over the 24 year period of the agreement.
Russia’s Transneft and Rosneft embroiled again in “crude wars”
A row over the reasons for the Druzhba pipeline contamination crisis gave rise to an open conflict between Russia’s biggest crude producer and the country’s oil pipeline monopoly. But what was initially seen as nothing more than just leveling mutual accusations has gone beyond a typical business quarrel between two large firms. This might eventually trigger an intervention from the Kremlin, especially given that the dispute between Rosneft and Transneft, once escalated to alarming levels, will pose a threat to the entire Russian oil sector.
Vaičiūnas: Harmony Link is safe (INTERVIEW)
Lithuanian Minister of Energy Žygimantas Vaičiūnas talks about reception of the polluted oil crisis in his country and preparations for synchronization with the European electricity system by Poland through Harmony Link.