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

“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, President of the Management Board of PGNiG SA. “I am glad that a company of such standing and reputation as Equinor, with which PGNiG already cooperates on exploration and production activities on the Norwegian Continental Shelf, becomes a gas supplier for our Group. This is a major step towards further development of cooperation between our companies in the future,” adds Ms. Waksmundzka-Olejniczak.

“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,” says Irene Rummelhoff, Equinor’s Executive Vice President of Marketing, Midstream and Processing.

The contracts between PGNiG SA and Equinor group provide for the supply of up to 2.4 billion m³/yr of gas from 1 January 2023 to 1 January 2033. The agreements secure additional volumes of gas that will be sent to Poland via Denmark using the Baltic Pipe. The pipeline, which is a joint project of Polish GAZ-SYSTEM and Danish Energinet, will commence operation from 1 October 2022. Starting from 2023 it will enable transportation of circa 10 billion m³/yr of which PGNiG has reserved circa 8.0 billion m³/yr.

According the PGNiG strategy, the primary source of gas to delivered via the Baltic Pipe will be PGNiG’s own production on the Norwegian Continental Shelf, which is expected to 3.0 billion m³ this year and could rise to 4.0 billion m³/yr by 2027.

To optimally utilise the remainder of the reserved capacity, PGNiG has already signed several contracts with suppliers operating on the Norwegian Continental Shelf. The contracts concluded with the Equinor group are so far the largest in terms of volume.

Equinor and PGNiG already cooperate on oil and gas exploration and production on the Norwegian Continental Shelf. The groups are licence partners in the Skarv and Gina Krog fields.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/26092022/pgnig-and-equinor-asa-have-concluded-gas-sales-agreements-for-natural-gas-from-the-norwegian-continental-shelf/