Energy GAS LNG SECURITY 7 April, 2023 8:00 am   
COMMENTS: Joanna Słowińska

Polish Briefing: Open season for 2nd FSRU I Orlen terminates last Russian deal I Ukraine buys Polish weapons. Many. I Gaz-System’s latest investment

FSRU-Hoegh-LNG A FSRU. Picture by Hoegh LNG.

What goes in Poland on 7th of April.

Poland’s 2nd FSRU sparked interest. Open season in the second quarter

“The results of the survey showed the the FSRU market is interested in the investment, which gives grounds for further analysis using Open Season procedures,” Gaz – System reports with regard to the floating storage and regasification unit project in the Gulf of Gdańsk.

“From March 6 to March 20, 2023, market participants had the opportunity to take part in a non-binding procedure for testing the demand for additional regasification capacity of the FSRU terminal in the Gulf of Gdańsk, in relation to the regasification capacity offered at the stage of the binding Open Season procedure, i.e. 6.1 billion cubic meters annually,” Gaz-System revealed. Previously it was expected that the second FSRU’s capacity would be 4 bcm. “Gas-System collected information on the degree the market was interested in additional regasification capacity, as well as the level of market interest in the export of regasified gas to the following directions: Slovakia, Lithuania, Denmark and Germany (existing connections), as well as the Czech Republic and Ukraine (planned connections),” the company’s press release said.

“The assessment of the questionnaires submitted during the procedure and the non-binding level of demand indicated confirm the market is interested in the increased regasification capacity of the FSRU terminal, as well as in the export of regasified gas in the region, which gives grounds for further analysis by the operator,” Gaz-System stated. “The non-binding demand reported as part of the study is the starting point for the decision to launch a  binding Open Season procedure for the demand for additional regasification capacity of the FSRU terminal, which is planned for the second quarter of 2023,” the company said.

Gaz-System is considering the construction of the FSRU by 2026. The Ministry of Climate and Environment announced for the first time the talks with Poland’s neighbors on deliveries through our floating gas port in the spring of 2022 in an interview with Talks are continuing with the Czechs, Slovaks, Hungarians and Ukrainians.

Gaz-System / Wojciech Jakóbik

Saudi Arabia covers almost half of Poland’s oil demand. Russian export is dead

On February 25 Russia’s Tatneft ceased to deliver oil to Poland’s PKN Orlen. Thanks to this, the Poles were able to terminate the contract and abandon the eastern direction. This has increased the importance of SA, which is covering almost half of Orlen’s demand.

“The agreement signed with Saudi Aramco provides the Orlen Group with oil in sufficient quantity to cover approx. 45 percent of the total demand of all refineries belonging to the group,” explains PKN Orlen in response to “As part of the diversification strategy, PKN Orlen is building its import portfolio based on oil supplies from the Persian Gulf, the North Sea, the Mediterranean, North America and West Africa,” the company revealed.

PKN Orlen also reported that “a few days ago” it terminated the agreement with Tatneft, which was valid until the end of 2024, because the Russians did not fulfill it. The contract provided for the possibility of its termination for this reason. Thus, the last futures contract for the supply of Russian oil to Poland ceased to be valid without Poland paying any damages.

 Wojciech Jakóbik

Ukraine’s large arms purchases in Poland

The visit of Ukrainian President Volodymyr Zelensky was groundbreaking in many respects. This can definitely be said by Polska Grupa Zbrojeniowa (PGZ), which won larger contracts than originally expected.

Instead of 100 Rosomak military vehicles. Kyiv will buy 150, plus 3 Company Self-Propelled Mortars RAK (24 mortars + accompanying vehicles) and 100 sets of Piorun air defense sets. In addition, an agreement was signed between PGZ and ARTeM on the production of 125mm tank ammunition.

Considering the fact that the previous contract was for over 50 AHS Krab gun-howitzers, the new one is not only a record contract for the Polish arms industry, but also marks a record-breaking period for the Polish military market.

These agreements have also sent a very strong message that when the Armed Forces of Ukraine will carry out a technical modernization of their army, they will transition to Western equipment. At that point the technology offered by Polish companies will be on top of the list for Ukraine. It is worth remembering that the Polish industry is also implementing in the Polish army the Borsuk amphibious infantry fighting vehicle, and will implement K2PL tanks and a newly designed, heavier version of the infantry fighting vehicle.

Bartosz Siemieniuk

Gaz-System is expanding a gas compressor station on the North-South Corridor

Gaz-System has received approval from the Opole Voivode for the construction of the fourth portable compression unit compressor station in Kędzierzyn Koźle. The investment will increase the compression capacity of the facility by 50 percent and, according to the operator, will improve Poland’s energy security and strengthen the National Transmission System throughout the entire network connecting supply directions located in the north of Poland – such as the LNG Terminal and the Baltic Pipe – with south-eastern Poland, up to the connection with Slovakia.

The delivery of the portable compressor unit with a capacity of about 13 MW and its installation at the Kędzierzyn compression plant will take place in the coming months. According to the announcement, Gaz-System will start operating the unit in December 2023. The compression plant will have four compressors, and its capacity will increase from 23 MW to 36 MW.

The gas compression plant in Kędzierzyn-Koźle was put into operation in March 2022. It is the first of its kind in the Opole region along the North-South Gas Corridor, which connects the LNG Terminal in Świnoujście and the Baltic Pipe through central and southern Poland with infrastructure in Central and Eastern Europe. It consists of both domestic gas pipelines and bilateral gas interconnections.

Gaz-System/Jędrzej Stachura