Equinor And PGNiG Agree 10-Year Gas Sales Deal

Equinor And PGNiG Agree 10-Year Gas Sales Deal
Equinor has signed a long-term gas sales agreement with PGNiG which will help with Poland's energy security.

Norwegian oil major Equinor has signed a long-term gas sales agreement with Poland’s PGNiG which will help with Poland’s energy security.

Equinor said that the agreement was for 10 years with a volume of around 84.75 billion cubic feet (bcf) of gas per year to be exported through the new Baltic Pipe. The Baltic Pipe Project connects the Norwegian gas export system to Poland via Denmark and facilitates the flow of Norwegian pipeline gas to Poland.

“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 Equinor’s executive vice president of Marketing, Midstream, and Processing, Irene Rummelhoff.

“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,” added Iwona Waksmundzka-Olejniczak, CEO of PGNiG.

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

The Baltic Pipe project connects to the Norwegian gas transportation system with Denmark’s transmission system operator Energinet responsible for the components on Danish territory and Poland’s transmission system operator GAZ-SYSTEM in charge of the section between Denmark and Poland.

The Polish company also this year revealed its plans to produce an additional volume of approximately 17.6 billion cubic feet of natural gas from its Norwegian assets this year to ensure the diversification of gas supplies for Poland.

As part of the same strategy, PGNiG also secured more acreage in Norway by agreeing to acquire a stake in the Aker BP-operated Ørn offshore gas field.

To contact the author, email bojan.lepic@rigzone.com

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