Equinor and Poland’s PGNiG agree long term gas sales contract
Today Equinor announced a long-term gas sales agreement with Poland’s PGNiG, according to the company's release.
The agreement is for 10 years with a volume of around 2.4 billion cubic metres (bcm) 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 flow of Norwegian pipeline gas to Poland.
The volumes under the new, long-term agreement reflecting market prices are equivalent to around 15 % of the typical, annual gas consumption in Poland. The agreement is from 1 January 2023 to 1 January 2033.
The Baltic pipe project connects to the Norwegian gas transportation system with Denmark’s transmission system operator (TSO) Energinet responsible for the components on Danish territory and Poland’s TSO GAZ-SYSTEM in charge of the section between Denmark and Poland.
Equinor is an international, broad energy company committed to turning natural resources into energy for people and progress for society. Equinor’s portfolio encompasses oil and gas, renewables and low-carbon solutions, with an ambition of becoming a net-zero energy company by 2050.
Headquartered in Stavanger (Norway), Equinor is the operator on the Norwegian continental shelf and present in around 30 countries worldwide.
Since 2018, the company is also active in the offshore wind energy sector in Poland. Equinor together with partner Polenergia is developing some of the most advanced offshore wind projects in Poland totaling 3000 MW. In 2021, Equinor acquired Polish renewables company Wento with a 1600 MW solar project pipeline in onshore renewables in Poland.
PGNiG is one of the leaders of the Polish natural gas market. Listed on the Warsaw Stock Exchange, the company’s core business includes exploration and production of natural gas and crude oil. Its key branches and subsidiaries import, store, sell and distribute gaseous and liquid fuels.
The PGNiG Group is also involved in district heating and electricity generation. PGNiG holds exploration and production licenses on the Norwegian Continental Shelf, in Pakistan and United Arab Emirates. Its Munich-based subsidiary PGNiG Supply & Trading is engaged in gas trading in Western Europe, also operating the LNG trading office in London.
In 2020, PGNiG launched a research program aimed at developing competences in production, storage, and distribution of biomethane, hydrogen and other alternative fuels. The PGNiG Group is also expanding its capacity of electricity generation from renewable energy sources based on photovoltaic and wind farms.
