The ORLEN Group together with the operator AkerBP and licence partners have prepared plans for development and operation for their fields on the Norwegian Continental Shelf. The reserves in these fields attributable to the Group are estimated at a total of 9 bcm of natural gas and 46.6 mboe of crude oil and natural gas condensate. Gas produced from the ORLEN Group’s fields is to represent a significant part of the volume transported to Poland via Baltic Pipe. The planned investments require consent of the Norwegian parliament. A favourable decision, expected in the second quarter of next year, will allow drilling on the fields to begin in 2024 and 2025, with production start in 2027. The ORLEN Group’s upstream investments are in line with the Group’s strategic goals related to boosting Poland’s energy security and independence.
The ORLEN Group has appointed a Management Board Representative and Council for Climate and Sustainability. The main tasks of the new corporate body will include analysing risks and opportunities related to the energy transition and climate change and raising the standard of communication on environmental matters with investors and the business community. The Council will be headed by PKN ORLEN’s Management Board Member for Strategy and Sustainability.
The Norwegian subsidiary of PKN ORLEN, together with its license partners, has submitted a plan for development and operation for the Verdande field in the Norwegian Sea. Production start is expected in the fourth quarter of 2025.
PKN ORLEN has collected delivery of the 200th shipment of liquefied natural gas arriving at the Świnoujście terminal. The latest delivery of 75 thousand tonnes was shipped to Poland from the US. To date, a total of about 21 billion cubic metres of natural gas have been delivered to Poland via the Świnoujście port infrastructure. This amount of gas fuel would suffice to supply all households in Poland for more than four years.
In the third quarter of 2022, the ORLEN Group posted LIFO-based EBITDA of PLN 11.7bn, including PLN 3.1bn attributable to one-off items. Adjusted LIFO-based EBITDA came in at PLN 8.6bn, down by PLN (-) 2.1bn, or (-) 20%, compared with the second quarter of 2022. Revenue amounted to PLN 73bn, with almost half of the figure generated by foreign sales. The power generation segment, which increased its electricity output and improved its operating profit relative to the previous quarter, had a positive impact on the Group’s performance. The upstream segment again delivered very good results, with average hydrocarbon production up 62% quarter on quarter. Sales at ORLEN stations in Poland accounted for 4% of the Group’s LIFO-based EBITDA. The result recorded by ORLEN stations in Poland went down by PLN 139m year on year, mainly due to declining fuel margins. Like other energy companies around the world, the ORLEN Group operated at the time in an unprecedented, extremely volatile macroeconomic environment due to the ongoing conflict in Ukraine. Nevertheless, since the beginning of the year the Group’s capex has reached an all-time high of nearly PLN 11bn, significantly strengthening Poland’s energy security and independence in terms of access to commodities.
PKN ORLEN has received the 50th shipment of liquefied natural gas delivered this year to the Świnoujście terminal. This represents an increase by 20 cargoes relative to the same period of 2021. The increase in LNG deliveries has secured the availability of gas for Polish customers despite tight supply on the European gas market.
The ORLEN Group has finalised its merger with PGNiG, thus establishing Central Europe’s largest energy group ranking among top 150 companies in the world by revenue and serving more than 100 million customers. By combining its operations with PGNiG, the ORLEN Group has created the potential to make multibillion-dollar investments that strengthen the energy security and independence of all of Central Europe and is therefore able to effectively deliver the energy transition in the markets where it is present.
Polskie Górnictwo Naftowe i Gazownictwo keeps up the fast pace of LNG deliveries to Poland. Between July and September, the Company took delivery of 14 LNG cargoes at the President Lech Kaczyński LNG Terminal in Świnoujscie. Three additional cargoes were brought in by the PGNiG Group through the terminal in Klaipėda, Lithuania.
PGNiG has secured a regasification capacity at the Lithuanian LNG terminal. This will provide the Company with the ability to import over 0.5 billion cubic meters of natural gas per year through the terminal. The reservation period is 10 years.
Polish Oil and Gas Company (PGNiG) and Equinor ASA group companies have concluded gas sales agreements for natural gas from the Norwegian Continental Shelf. The total volume to be supplied under the contracts is 2.4 billion cubic meters of gas per year for 10 years. Gas purchased from Equinor will be delivered to Poland via the Baltic Pipe pipeline.
In the six months to June 30th 2022, the PGNiG Group generated revenue of PLN 78.4bn, EBITDA of PLN 15.1bn and net profit of PLN 4.8bn. These figures reflect primarily the situation prevailing on the European gas market. Record-high hydrocarbon prices supported upstream performance in Poland and abroad, with a major rise in oil and gas production volumes reported by the Group for its foreign operations. At the same time, high fuel prices created a considerable drag on downstream performance.
PGNiG Upstream Norway together with its partner Aker BP have confirmed a new oil and gas discovery in the Norwegian Sea. The company believes that more reservoirs may be found nearby and so plans further drilling soon.
In June 2022, Polskie Górnictwo Naftowe i Gazownictwo received six shipments of liquefied natural gas at the Świnoujście port and two additional deliveries at Lithuania’s Klaipėda terminal. Altogether during the first half of 2022, the Company imported as many as 29 cargoes of LNG.
The PGNiG Group will soon undertake a project to expand its Underground Gas Storage Facility (UGSF) in Wierzchowice. The project will add as much as 25% to Poland’s overall gas storage capacity, which will reach 4 bcm.
PGNiG Upstream Norway AS has signed an agreement with Wellesley Petroleum AS for the purchase of shares in the Ørn gas field in the Norwegian Sea. Its exploitation will provide PGNiG Group with an additional 0.25 bcm of natural gas per year from 2026.
In the first quarter of 2022, the PGNiG Group generated over PLN 47bn in revenue, PLN 8bn in EBIT and over PLN 4bn in net profit despite an operating loss posted by the Trade and Storage business. The strong performance was driven chiefly by the upstream operations in Poland and abroad, which contributed around 90% to the PGNiG Group’s EBITDA.
PGNiG has signed Heads of Agreement with Sempra Infrastructure defining the main provisions of a purchase and sale agreement for 3 million tons of liquefied natural gas (LNG) per annum. The LNG would be sourced from two liquefaction terminals in the Gulf of Mexico and would come to Poland, among others, via a floating regasification terminal in the Gulf of Gdansk.
The tanker "Maran Gas Apollonia" with the cargo of over 65 thousand tons of liquefied natural gas arrived at the President Lech Kaczyński LNG Terminal in Świnoujście. This is the first delivery made on a vessel chartered by the PGNiG Group. It is also the first shipment PGNiG has received from Venture Global LNG who will soon be a major supplier to Poland.
