Polish Briefing: President signs bill on investments in grids I Orlen merges more companies

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Transmission network. Picture by PSE
Transmission network. Picture by PSE

The President signed an amendment to the law on the Implementation of Strategic Investments in Transmission Networks

President Andrzej Duda has signed an amendment to the law on the preparation and implementation of strategic investments in transmission networks, the President’s office said on Friday. The bill includes regulations that will simplify the procedures related to investments in transmission and distribution infrastructure.

The law contains solutions aimed at shortening and simplifying procedures related to investments in electricity transmission and distribution networks of particular importance for the functioning of the national electricity market and fpr increasing the safety of operation of liquefied natural gas (LNG) bunkering points.

The amendment introduces the definition of an accompanying investment, understood as an investment task that is functionally related to a strategic investment in a distribution transmission network with a voltage equal to or higher than 110 kV, existing electricity lines constituting elements of a distribution network with a voltage equal to or higher than 110 kV, temporary construction facilities, gas network facilities, electricity, water, sewerage networks, heating, telecommunications, road or rail infrastructure and public charging stations.

The new rules remove the time limit for the application of simplified procedures to the implementation of strategic investments in transmission networks. „This means that the law will cease to have the status of an episodic law and will enter permanently into the national legal order, as a legal act allowing for permanent derogations from the application of the indicated provisions of the laws,” it has been explained.

It has been pointed out that the annex to the Act, which so far included 52 strategic investments in the field of transmission networks, will include 85 investments in the field of transmission networks and 81 accompanying investments.

In addition, the new rules introduce an exemption from the obligation to obtain a permit for the construction of a substructure for electromagnetic lines. However, it will be necessary to register such an investment.

The amendment also introduces obligations related to the launch and functioning of the central energy market information system. „The owner or perpetual usufructuary of the property will be obliged to make the property available for the purpose of performing activities related to the reconstruction of facilities, while at present this obligation only covers making it available for the purpose of maintenance and troubleshooting,” it has been clarified.

The update  also includes provisions amending the act on electromobility and alternative fuels. It indicates the deadlines for submission of applications for individual technical tests of the liquefied natural gas bunkering point.

It has been reported that the law will enter into force after 30 days from the date of announcement, except for the provisions of art. 8, amending the law on electromobility and alternative fuels, which will enter into force after 14 days from the date of announcement.

Office of the President of the Republic of Poland / Jacek Perzyński

Orlen strengthens integration of its oil companies

„Continuing its consolidation path, Orlen merged Orlen Oil and Lotos Oil. The integration will enable international expansion, thanks to launching the production of advanced finished oils,” Orlen said in a press release.

„The consolidation of Orlen Oil with Lotos Oil will increase the Group’s operational efficiency and development potential in the lubricants market. In this way, we are building a strong domestic entity capable of competing not only at home but also abroad. Synergies obtained through the integration of assets will increase the level of investment and make better use of existing assets, thereby strengthening the value chain of the entire Orlen Group, ” Orlen President Daniel Obajtek said in a statement.

The integration of the oil companies took place through the transfer of the entire Lotos Oil assets to Orlen Oil, which has four production facilities: in Trzebin and Jedlicz and the plants acquired from LOTOS Oil in Czechowice-Dziedzice and Gdańsk. The company employs almost 700 people and its lubricants production capacity is approx. 420,000 tons per year. The HQ of the consolidated company is in Gdańsk.

Currently, work is underway on the preparation of a new, integrated product range for Orlen Oil. In the near future, the company will offer group II base oils, which will be produced in the Hydrocracking Oil Block (HBO) in Gdańsk. The introduction of this category of products to the Polish and foreign markets will significantly increase the competitiveness of the Group and open up wide opportunities for Orlen Oil to produce advanced ready-to-use oils for the automotive, industrial and marine industries. The plant is expected to produce more than 400,000 tons annually of group II base oils and tens of thousands of tons of intermediate fuels. The value of the HBO project, which will be commissioned in 2025, is approx. 1.4 billion.

The merger of Orlen Oil with LOTOS Oil is another consolidation following the acquisition by Orlen last year of Grupa Lotos and PGNiG. The other companies added to Orlen’s portfolio are PGNiG Upstream Norway and Lotos Exploration & Production Norge, which operate on the Norwegian Continental Shelf, as well as Lotos Koltrans and Orlen Koltrans.

The latest estimates indicate that the value of synergies resulting from the construction of a multi-energy concern based on Orlen, Grupa Lotos and PGNiG will amount to PLN 20 billion by 2032. This is twice as much as expected before the merger happened. The implementation of synergies will be possible thanks to the implementation of more than 160 integration and transformation projects, which will open the door to utilizing the latest technologies, optimizing resources, implementing innovations and improving the efficiency of consolidated areas.

Orlen Group / Jacek Perzyński