What goes on in Poland on the 31st of August.
PGNiG and ERU to commence joint E&P operations in Ukraine
Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) and ERU Management Services have signed an agreement providing for the purchase by the Polish company of a controlling interest in Ukraine’s Karpatgazvydobuvannya, the sole holder of the Byblivska licence located in Western Ukraine, in an area adjacent to the Polish border.
Karpatgazvydobuvannya holds a license to explore for and produce hydrocarbons in the western part of the Lviv Oblast, adjacent to the Polish border. In terms of geology the area is an analogue of Przemyśl, Poland’s largest natural gas field operated by PGNiG for more than 60 years. Its attractiveness and potential have been confirmed through PGNiG’s preliminary analyses of geological and geophysical data.
“The agreement signed today marks a step in PGNiG’s strategy to expand its operations on foreign markets, which is a part of the company’s efforts to diversify its sources and directions of natural gas supply. We believe all these efforts will help strengthen the energy security not only for Poland and Ukraine, but also for all countries of the Three Seas Initiative,” said Paweł Majewski, President of the PGNiG Management Board. “For the past five years, we have been actively trading in natural gas in Ukraine. Not only have we launched gas sales to the Ukrainian market, but we have also gained access to the Ukrainian gas transmission network and storage facilities, thereby increasing our ability to optimize trade in natural gas. Our successful activities so far and strong cooperation with ERU have increased our appetite to further tap the potential of the Ukrainian market, and so our partnership is being extended to include upstream,” Paweł Majewski added.
As a result of the agreement, PGNiG is to acquire 85% of shares in Karpatgazvydobuvannya. According to the work schedule included in the license, preparations for drilling an exploration well are to be completed by the end of 2021. The drilling itself is scheduled for the second half of 2022, followed by formation tests. If the test results are positive, the well will be connected to the Ukrainian gas network and brought onstream in 2023. The Karpatgazvydobuvannya shareholders also plan to have additional geophysical surveys of the license area performed to help design additional wells.
“I am proud of cooperation between ERU and PGNiG, that brings to reality the regional energy initiatives envisioned two years ago this month in Warsaw between the US, Poland and Ukraine, when we had contracted the supply of American LNG with our Polish partner. As US and Polish companies working together in Ukraine with our Ukrainian E&P project company (Karpatgazvydobuvannya LLC), we believe this sets an important example for further regional cooperation in an important sector,” commented Dale Perry, Managing Partner at ERU Management Services, co-owner of Karpatgazvydobuvannya. The agreement went into force after the relevant approvals from the Polish Competition and Consumer Protection Authority and its Ukrainian counterpart had been issued.
Baltic Pipe will reach a capacity of 2-3 bcm in October 2022
The Government Plenipotentiary for Strategic Energy Infrastructure, Piotr Naimski, made an appearance during his visit to Pogorzelica, the landing point for the Baltic Pipe, through which Norwegian gas will reach Poland. He revealed that in October 2022 the pipe’s capacity will attain 2-3 billion cubic meters, and will only reach the full 10 billion by the end of the year.
„This is the moment when we can say that the investment started in 2016 will be completed according to the deadline, projections and schedule. Next year, this gas pipeline will bring gas from Norway to Poland. If we look from the shore, we can see the ships that are working at sea. The marine part will be completed by the end of this year. Then there are various types of works necessary for the launch, which will take place in October next year,” said Minister Naimski.
„We can say that next year will be the moment when we will be able to state that the strategy of diversifying, diversifying supplies and making them safe will be implemented. It took several years, but you have to remember this is the third attempt. The third time was successful,” the Minister reminded.