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09.04.2024 ORLEN Group to deliver another 1 bcm of self-produced gas via Baltic Pipe
The ORLEN Group has increased the volume of natural gas transported to Poland from its own production assets in Norway by more than 30%, equating to an additional 1 bcm annually. Gas produced from Norwegian fields by PGNiG Upstream Norway already accounts for about a half of the entire Baltic Pipe capacity booked by ORLEN.
The increase in the volume of gas delivered to Poland results from the recent acquisition of KUFPEC Norway, with all attributable gas production directed toward Poland as of 1 April 2024.
“The Norwegian Continental Shelf is a key market for us, pivotal in securing natural gas needed to power our nation’s economy, drive its growth and meet the demand of our customers. We are engaged in effective efforts to maximise the share of our own gas in total volumes flowing to Poland from Norway. The acquisition of KUFPEC Norway exemplifies this commitment, enabling a substantial increase in our own gas production on the Norwegian Continental Shelf by over 1 bcm per year. Since 1 April, every additional cubic metre extracted has been directed toward Poland, fortifying the energy security of gas consumers while further optimising our gas procurement costs,” says Witold Literacki, acting CEO and President of the Management Board of ORLEN.
With the acquisition of KUFPEC Norway, PGNiG Upstream Norway of the ORLEN Group (PUN) has gained control of stakes in five producing fields: Gina Krog, Sleipner Vest, Sleipner Ost, Gungne and Utgard. As PUN had been an interest-holder in all those assets, it was able to unlock additional synergies, both operational and financial.
In terms of the gas production volume, the acquisition of KUFPEC Norway has propelled the ORLEN Group's Norwegian output by 1 bcm, to 4 bcm annually, marking a significant stride towards its ambitious goal of exceeding 6 bcm per year on the Norwegian Continental Shelf by 2030.
The extracted gas is dispatched to Poland via the Baltic Pipe, where the ORLEN Group has reserved capacity in excess of 8 bcm per year. By diverting the additional gas volumes secured through the acquisition of KUFPEC Norway to the Baltic Pipe, PGNiG Upstream Norway’s output may contribute, on an annualised basis, about a half of the entire volume of gas imported by ORLEN from Norway utilising the Baltic Pipe’s maximum reserved capacity.
