Equinor and Poland’s PGNiG agree to long-term gas sales contract

Offshore staff

STAVANGER, Norway — Equinor announced a long-term gas sales agreement with Poland’s PGNiG.

The agreement is for 10 years with a volume of about 2.4 Bcm of gas per year to be exported through the new Baltic Pipe.

The Baltic Pipe Project connects the Norwegian gas export system to Poland via Denmark and facilitates the flow of Norwegian pipeline gas to Poland.

“Equinor is a broad energy provider and has been a key supplier of gas to Europe for 45 years. I am very happy that through this gas sales agreement we can extend our offering as a reliable energy partner also to Poland. Equinor is also working with local companies on developing large scale offshore wind and solar projects in Poland, and we look forward to further developing our energy cooperation with PGNiG and Poland in the time to come,” said Equinor’s executive vice president Marketing, Midstream and Processing , Irene Rummelhoff.

“Equinor is a strategic business partner for the PGNiG Group playing a crucial role in our efforts to diversify gas supplies to Poland. The contracts we have just signed provide for gas that will be delivered to Poland using the Baltic Pipe pipeline, resulting in a significant strengthening of energy security of our country,” says Iwona Waksmundzka-Olejniczak, CEO of PGNiG SA.

The volumes under the new, long-term agreement reflecting market prices are equivalent to about 15% of the typical, annual gas consumption in Poland. The agreement is from Jan. 1, 2023 to Jan. 1, 2033.

The Baltic pipe project connects to the Norwegian gas transportation system with Denmark’s transmission system operator (TSO) Energinet responsible for the components on Danish territory and Poland’s TSO GAZ-SYSTEM in charge of the section between Denmark and Poland.

Additional offshore projects

In late August, Aker Solutions BP and the license partners Pandion Energy of PGNiG Upstream Norway announced they were planning to invest between NOK 40 and 50 billion (US$4 billion to $5.1 billion) in Valhall PWP–Fenris. The partners are on track to submit the PDO towards the end of the year. The PDO will be deliberated in the Storting before the summer of 2023.

In July, ConocoPhillips Skandinavia said it gained approval from the Norwegian and UK authorities for its Tommeliten A gas condensate project in the Greater Ekofisk Area of ​​the North Sea. Production should start in 2024. Other partners in the Tommeliten A Unit are PGNiG Upstream Norway, TotalEnergies EP Norge, Vår Energi, ConocoPhillips (UK) Holdings, TotalEnergies UK and Eni UK.

In early June, PGNiG Upstream agreed to acquire Wellesley Petroleum’s 40% interest in PL942 in the Norwegian Sea, which includes the 2019 gas discovery Ørn. Assuming approval from the Norwegian authorities, PGNiG would join existing partners Equinor and operator AkerBP (each holding a 30% stake).

09.23.2022

Leave a Reply

Your email address will not be published.

Back to top button
DRAGONINKHOUSE