There are no threats to the continuity of fuel supplies to Poland
The company said it was monitoring it on an ongoing basis geopolitical situation in the Middle East and its potential consequences for global energy markets.
“At this stage, we do not identify any threats to the continuity of fuel supplies to the domestic market or to the operation of our refineries, because Orlen has not imported and does not import crude oil through Strait of Hormuz. (…) The market security system, including mandatory and strategic stocks, constitutes an important safety buffer in the event of temporary disruptions in international trade,” the company said.
Where does the oil that goes to Orlen come from?
The company recalled that for years it has been implementing a strategy of diversifying its sources of crude oil supplies – the raw material supplied to the company’s plants comes from, among others, from the Mediterranean basin, North and West Africa, Scandinavia, the Americas and from domestic extraction. The company also has long-term contracts with corporations such as Aramco or Equinorwhich cover a significant part of the demand. “This supply structure significantly reduces the risk of disruptions in individual transport routes,” the company emphasized.
Orlen is ready for various scenarios
Orlen emphasized that it is prepared for various scenarios of the development of the international situation, including possible changes in the directions of raw material supplies. “We currently do not anticipate interruptions, downtime or declines in fuel production refineries of the Orlen Group due to tensions in the region Middle East” – noted the company.
“The geopolitical situation is one of many factors influencing the prices of crude oil and fuel products on world stock exchanges. Markets also react to the decisions of producers associated in OPEC+, global inventory levels, macroeconomic data and exchange rates. Possible changes in fuel prices in Poland are the result of all these elements, as well as local factors, such as production costs, logistics, fiscal burdens and the competitive environment,” Orlen explained.
LPG deliveries
Orlen also reported that LPG put on the market by the company comes mostly from its own production from the refinery Orlen Groupsupplemented with imports mainly by sea from the USA and Western and Northern European countries. “This solution allows us to guarantee stable and reliable supplies of products of appropriate quality. Therefore, there is no reason for drivers using LPG installations to be afraid of restrictions in the availability of this fuel in the country,” he added.
Attack on Iran
The attack on Iran began on Saturday morning. The supreme leader’s headquarters in Tehran and Iranian military targets were attacked. Iranian authorities confirmed the death of the country’s supreme leader on Sunday Ali Khameneicommanders Islamic Revolutionary Guard Corps (IRGC) Mohammad Pakpur and influential security adviser Ali Shamkhani. Iran responded by attacking Israel and US military targets in the Persian Gulf states.
The importance of the Strait of Hormuz
Controlled by Iran The Strait of Hormuz, connecting the Persian Gulf with the Arabian Sea and the Indian Ocean, is a key point on the world trade map.. Following Saturday’s US and Israeli attacks, the Iranian Revolutionary Guard (IRGC) announced that no units were allowed to enter the strait; hundreds of tankers were disabled on both sides.
Between one-fifth and one-third of the world’s maritime transport of crude oil and a large proportion of natural gas flows through the strait. This is the only sea route for oil from Iran, Saudi Arabia, United Arab Emirates, Bahrain, Kuwait and Iraq.
