Energy 23 March, 2018 9:00 am   
COMMENTS: Mateusz Gibała

Polish Briefing: Morawiecki discussed synchronization in Brussels. Oil supplies from Iran to Poland be blocked?

What goes on in Poland on the 23rd of March.

Morawiecki discussed synchronization in Brussels

In Brussels, Prime Minister Morawiecki among others talked about the synchronization of the Baltic States’ network with Europe. It will allow them to become independent from the Russian network with which they are currently synchronized.

The President of the European Commission Jean-Claude Juncker invited the Prime Ministers of Poland and the Baltic States to a meeting at the Commission headquarters. It was devoted to preparations for the European Council in the field of integration of the Baltic power grid with the European system by Poland.

In December 2017, Poland and the Baltic States made a political declaration on the will to synchronize. The Commission pressed for quick work under the threat of losing funding. Currently, the Baltic states operate in the IPS / UPS system, which is controlled by Russia. Synchronization is to make them independent of the Russians.

The point of contention was the LitPol Link 2 project, which Poles do not want. The Lithuanians agreed to synchronize without its implementation, but Latvia and Estonia have so far opposed this, considering synchronization with the network of Scandinavian countries.

Will oil supplies from Iran to Poland be blocked?

Oil supply from Iran is coming to PKN Orlen. It is not known whether this will continue to be possible in the future, because the US may introduce new sanctions against Tehran. Concerns about such a scenario are driving the price of oil on the stock exchanges.

On March 21, the visit of Prince Mohammed bin Salman in the USA took place. He talked about the necessity of revising the nuclear agreement with Iran, which he considered “defective”. The agreement assumes that Iran will agree to the monitoring of the civil nuclear program, give up the military, and the international community will remove sanctions. Thanks to it, it is possible to export Iranian oil, including to Poland.

The current US administration is considering tightening the course towards Iran and rapprochement with Saudi Arabia. In response to news from the US, the Brent barrel went up to more than $ 69.5, or the level of February this year. If the Americans withdraw from the nuclear agreement, trading in Iranian oil outside the barter exchange will be impossible again.

Meanwhile, PKN Orlen is waiting for delivery from the island of Kharg in Iran. In mid-April, a tanker with 130,000 tons of crude oil on board for the Płock Refinery is expected to reach the oilfield. – The production tests carried out on the basis of previous Iranian oil deliveries have achieved great efficiency results, which opens the way to increasing the share of this oil in our raw material portfolio – said Daniel Obajtek, President of the PKN Orlen Management Board.