Equinor and Poland’s PGNiG enter into a long-term gas sales agreement

Overseas staff

STAVANGER, Norway — Equinor announced a long-term gas sales agreement with Poland’s PGNiG.

The agreement covers 10 years with a volume of approximately 2.4 Gm3 of gas per year to be exported via the new Baltic Pipe.

The Baltic Pipe project connects the Norwegian gas export system to Poland via Denmark and facilitates the transport of the Norwegian gas pipeline to Poland.

“Equinor has been a major energy supplier and key gas supplier in Europe for 45 years. I am very pleased that, thanks to this gas sales agreement, we can also extend our offer as a reliable energy partner to Poland. Equinor is also working with local companies on the development of 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 times to come,” said the Vice President. Marketing, Midstream and Processing executive of Equinor. , Irene Rummelhoff.

“Equinor is a strategic business partner of the PGNiG Group which plays a crucial role in our efforts to diversify Poland’s gas supply. The contracts we have just signed foresee gas that will be delivered to Poland via the Baltic Pipe gas pipeline, which translates into a significant strengthening of the energy security of our country,” said Iwona Waksmundzka-Olejniczak, CEO of PGNiG SA. .

The volumes covered by the new long-term agreement reflecting market prices are equivalent to approximately 15% of the typical annual gas consumption in Poland. The agreement is from January 1, 2023 to January 1, 2033.

The Baltic gas pipeline project connects to the Norwegian gas transmission system with the Danish transmission system operator (TSO) Energinet responsible for the components on Danish territory and the Polish TSO GAZ-SYSTEM in charge of the section between Denmark and Poland.

Additional offshore projects

In late August, Aker Solutions BP and PGNiG Upstream Norway’s licensing partners Pandion Energy announced plans to invest NOK 40-50 billion ($4-5.1 billion) in Valhall PWP-Fenris. The partners are on track to submit the PDO towards the end of the year. The AOP will be deliberated at the Storting before the summer of 2023.

In July, ConocoPhillips Skandinavia said it had obtained approval from Norwegian and British authorities for its Tommeliten A gas condensate project in the Greater Ekofisk region of the North Sea. Production is expected to start in 2024. Other partners in the Tommeliten A unit are PGNiG Upstream Norway, TotalEnergies EP Norge, Vår Energi, ConocoPhillips (UK) Holdings, TotalEnergies UK and Eni UK.

In early June, PGNiG Upstream agreed to acquire Wellesley Petroleum’s 40% stake in PL942 in the Norwegian Sea, which includes the Ørn gas discovery in 2019. Subject to approval by Norwegian authorities, PGNiG would join existing partners Equinor and operator AkerBP (each holding a 30% stake).

23.09.2022

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