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Polish Briefing 29 July, 2021 10:00 am   
Editorial staff

Polish Briefing: Orlen’s record result thanks to RES and petrochemicals | PGNiG Group expands its fleet of gas tankers

orlen

What goes on in Poland on the 29th of July.

Orlen’s record result thanks to RES and petrochemicals

Orlen boasts of the best results in history. In the second quarter of 2021, EBITDA LIFO increased by PLN 1.2 billion year-on-year to PLN 3.2 billion. The power industry and petrochemicals helped the most.

The company reports that in the second quarter of 2021, the energy segment again achieved a very good EBITDA result of over PLN 1.2 billion, largely due to the increase in the Energa Group’s result, which PKN Orlen acquired last year. In the second quarter of this year, the Energa Group generated EBITDA in the amount of PLN 797 million, which means an increase by PLN 537 million (y / y).

According to Orlen, the result was also positively influenced by the valuation and settlement of CO2 futures contracts within a separate transaction portfolio. At that time, the total production of the ORLEN Group amounted to 2.6 TWh, of which approx. 70% came from renewable energy and gas-fired units. The current installed capacity of the Orlen Group is 3.4 GWe, of which over 1.4 GWe in the Energa Group.

PGNiG Group expands its fleet of gas tankers

PGNiG Supply & Trading signed a contract for chartering two LNG carriers. The vessels will be built exclusively for the PGNiG Group and will enter service in the first half of 2024. PGNiG Supply & Trading (PST) of the PGNiG Group and Knutsen OAS Shipping have signed contracts for chartering of two LNG carriers. Each of the vessels will have a capacity of approx. 174 thousand cubic metres and PST will be their sole user for 10 years, with an option of extension.

“We are consistently developing PGNiG’s position on the international LNG market. Chartering of the tankers is an important step to implement our plans in this area. It is an optimal solution, ensuring certainty and at the same time flexibility of logistic operations, which are an important element of building competitive advantage”, said Paweł Majewski, PGNiG SA CEO. The chartered ships will be delivered in 2024. The PGNiG Group has already contracted its first two LNG carriers in 2020, also with Knutsen OAS Shipping. Both contracts stipulate that the shipowner will be responsible for the delivery, manning and maintenance of the vessels. PST will be in full control of their commercial operations. The PGNiG Group plans to use its gas carriers primarily to transport LNG from US gas liquefaction facilities contracted by PGNiG in FOB trading formula.

All four LNG tankers chartered by PST will be vessels with a capacity of 174 thousand cubic meters, which gives the possibility of loading about 70 thousand tons of liquefied natural gas. This means that each tanker will be able to transport a fuel load equivalent to about 100 million cubic meters after regasification.