Gas as a bridge fuel for energy transformation

Luc Williams

The debate entitled “The role and importance of natural gas in the energy transformation” was attended by: Miłosz Motyka, Deputy Minister of Climate and Environment, Robert Czekaj, Executive Director for Exploration and Production at ORLEN SA, Director of the Central Branch of PGNiG in Warsaw, Agnieszka Ozga, Director of the Energy Transformation Division at Gaz-System, Prof. Jakub Kupecki, Director of the Energy Institute – National Research Institute, and Adam Wawrzynowicz, lawyer and expert of the Gas Chamber of Commerce.

Further diversification of supplies

The debate participants agreed that energy transformation is necessary, and in Poland natural gas plays a key role in it.

– This is not something invented or imposed, it is an absolute necessity, which is already being implemented in Poland with the participation of state-owned companies, science, business and government – ​​Miłosz Motyka reminded and added that gas primarily supports decarbonization in heating systems. He assured that the government will continue the policy of diversifying the sources of obtaining this raw material.

– This is the expansion of the LNG terminal in Świnoujście – where another tank will soon start operating. This is the construction of the FSRU terminal near Gdańsk. These are very well-developed gas networks. In addition, there is the enormous potential that we have and that we are already developing in the field of biogas – the deputy minister listed.

According to him, this potential can be estimated at up to 10 billion cubic meters.

– This is the amount that corresponds to the former import of natural gas from Russia – stressed Miłosz Motyka.

Robert Czekaj expressed the view that gas will play the role of a “bridge fuel” in the energy transformation.

– Gas is undoubtedly already playing the role of a bridge fuel. We rely largely on our own extraction, including domestic production, which is realized at a level of about 3.5 billion cubic meters of gas per year.

When asked about further prospects for obtaining this raw material in Poland, Robert Czekaj recalled that the company is constantly conducting geological research in this area.

– We are looking at the structures where this gas is, it is possible that we will reach for it deeper. When it comes to our operating extraction centers, i.e. branches in Sanok and Zielona Góra, operating in the areas of south-eastern Poland and in the west of the country, we are identifying further investment opportunities there. He also informed that ORLEN plans to increase the amount of gas obtained from the Norwegian Continental Shelf – from 3.1 billion cubic meters in 2023 to approx. 4.5 billion cubic meters this year.

Supplies of liquefied gas to Poland also play an important role.

In 2023, ORLEN received over 6 billion cubic meters of raw material from the LNG Terminal in Świnoujście, thus covering approximately one third of the total gas demand in Poland.

According to the plan, after the launch of the second gas port in the Gulf of Gdańsk, which is to take place in 2028, and the completion of the expansion of the terminal in Świnoujście, the total capacity of both installations will reach approximately 14 billion cubic meters per year.

Robert Czekaj added that Orlen wants to supply its customers in a safe and diversified way and this is one of the elements of the company’s strategy that will not change.

If we are talking about energy transformation, it must take place safely. And then it is safe when we have our own extraction and control the entire supply chain. We also have an influence on the logistics of LNG gas deliveries, because we are developing a fleet of gas carriers. Our fleet already includes four ships, the next two will appear next year, and two more will be delivered to us within a dozen or so months, and it will already be a solid and flexible fleet – said Robert Czekaj.

Given the still unstable geopolitical environment in Europe and around the world, as well as the forecasted increase in demand for gas in the coming years, ensuring uninterrupted supplies of natural gas is of strategic importance. The diversified portfolio of the ORLEN Group fits into these needs.

Extraction from domestic deposits, LNG supplies and the Baltic Pipe are currently the three most important sources ensuring uninterrupted gas supplies to Polish recipients. In 2023, they satisfied 94% of the annual demand for natural gas in our country.

Robert Czekaj also pointed out that ORLEN is also implementing its hydrogen program.

– We look at the development of hydrogen technologies in a holistic way. The company is opening hydrogen refueling stations located in the TEN-T network, and it also has a fuel certification laboratory in Trzebinia, where the purity of hydrogen is tested. This is the third such laboratory in the world after the United States and Great Britain. We are also working on a project located at the Gdańsk Refinery, which involves the construction of an electrolyser with a capacity of at least 100 MW, which will ultimately allow the fuels produced there to be “greened” – enumerated Robert Czekaj.

Change the mix

Agnieszka Ozga recalled that Gaz-System, the operator of the gas fuel transmission system in Poland, has been pursuing two main goals for almost 20 years.

– The first was to ensure energy sovereignty in terms of gas supplies and their diversification. The second was and is to strengthen the role of gas in the transformation process – she emphasized.

She also assured that the company has sufficiently extensive transmission systems to be able to cover both current and planned demand.

– We would be able to cover this demand at a much higher level, because the capacity of interconnections and available sources currently amounts to over 44 billion cubic meters – indicated the representative of Gaz-System, emphasizing that there are no concerns about the success of subsequent implemented projects, such as the expansion of the LNG terminal in Świnoujście or the launch of a new one in Gdańsk.

She also noted that Poland has gas connections with all neighbouring countries.

Professor Jakub Kupecki drew attention to the technological progress in Poland that accompanies the energy transformation.

– The share of coal in electricity production at 56% should be pleasing, as it indicates that we are moving from a niche technology to gas technologies, which are very popular, proven and cost-verified. Gas is a bridge fuel and will probably play this role in our system for many years – he emphasized.

Gas in the Polish presidency

Attorney Adam Wawrzynowicz expressed the view that the upcoming presidency (our country will assume it in the European Union for six months on January 1, 2025) will be a good opportunity for a debate on various models of energy transformation, including the Polish path, in which gas plays a large role. He recalled that according to EU programs, such as the “REPowerEU” plan, member states should primarily invest in renewable energy sources, while our country’s situation is much more complicated than that of Western European countries.

– It is an ambitious task to try to trigger a discussion related to the different perception of our path to achieving climate neutrality than in other EU countries – emphasized the expert of the Gas Chamber of Commerce.

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About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.