The Orlen Group increased by over 30%. the amount of gas transmitted to Poland from its own production in Norway, the company announced.
Annually, this means an additional 1 billion m3 of gas. Gas coming from Norwegian deposits exploited by PGNiG Upstream Norway already fills approximately half of the total capacity of the Baltic Pipe gas pipeline reserved by Orlen.
The increase in the amount of own gas transmitted to Poland is the result of the takeover of Kufpec Norway and the redirection of its entire gas production to the country from April 1.
“The Norwegian Continental Shelf is a key market for us from the point of view of obtaining gas necessary for the proper functioning and development of the national economy and meeting the needs of our customers. We effectively strive to ensure that as much of the raw material sent to Poland from Norway comes from our own extraction, an example of which is the acquisition of Kufpec Norway, which allowed the company to increase the amount of gas extracted on the Norwegian Continental Shelf by over one billion cubic meters per year. From April 1 this year, all additional gas will be directed to the country, strengthening the energy security of recipients and at the same time enabling the group to further optimize the costs of obtaining the raw material,” said acting president Witold Literacki, quoted in the release.
As a result of the purchase of Kufpec Norway, PGNiG Upstream Norway z Orlen Group (PUN) took control of shares in 5 producing deposits: Gina Krog, Sleipner Vest, Sleipner Ost, Gungne and Utgard. PUN was already a shareholder in all these deposits, which translated into additional operational and financial synergies.
In terms of gas production, the acquisition of Kufpec Norway allowed to increase the amount of raw material extracted by the Orlen Group in Norway by 1 billion m3 – up to 4 billion m3 per year. This is an important step towards achieving the company's strategic goal, which is to produce over 6 billion m3 of gas annually on the Norwegian Continental Shelf in 2030, it was emphasized.
The extracted raw material is sent to Poland via the Baltic Pipe gas pipeline, in which the Orlen Group has reserved capacity enabling the transport of just over 8 billion m3 of gas per year. Directing additional volumes obtained as a result of the acquisition of Kufpec Norway to Baltic Pipe means that on an average annual basis, PGNiG Upstream Norway's production may constitute approximately half of the gas imported by Orlen from Norway using the maximum reserved capacity of Baltic Pipe.
Orlen Group manages refineries in Poland, the Czech Republic and Lithuania, conducts retail operations in Central Europe, mining operations in Poland, Norway, Canada and Pakistan, and is also involved in energy production, including renewable energy sources and natural gas distribution. As part of the construction of a multi-energy concern, the company finalized the acquisitions of Energa, Grupa Lotos and PGNiG. Its consolidated sales revenues reached PLN 372.64 billion in 2023. The company has been listed on the WSE since 1999; is included in the WIG20 index.
(ISBnews)
