Thursday 13 March 2014

Polish plans regarding import of gas

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Robert Lidke, the reporter of Polish Radio, has written very interesting article on international (European) arena of gas. It has been said that the idea of ​​the creation of the EU's gas policy towards Russia has no chance of success. Different scenarios, such as import of gas from Qatar or the United States of America are not economically sufficient to be considered.


Joint purchases of gas from Russia by the European Union, with the same, unified price for all member states are said to be a way towards energy security of the EU countries and lower gas prices - the Prime Minister Donald Tusk spoke with German Chancellor Angela Merkel. At the moment, countries arrange contracts for gas supply individually, with different price offers – the difference in some cases can reach –teen per cent.

When asked about the chances for the implementation of this project, Andrzej Szczesniak (highly respected expert in the fuels’ industry) said that it is a very ambitious project – and ‘ambitious’ in the slang of Brussels means rather impossible to implement.
There were similar trials with the contracts regarding oil and gas in the Middle-Eastern negotiations, but they never got finalized. Main problem is the fact of (if such action took place) eventual violating the principal of competition on the European market.

A few years ago, Polish government planned development of liquefied natural gas import terminal at Świnoujście (Poland). Szczesniak, when asked about the prospects of importing liquefied natural gas from Qatar, he states that it is very uncompetitive policy. If we bring Qatari gas, it will be almost half as expensive as Russian. So diversification consists in buying a lot of expensive gas, does not speak to anyone in the market economy” points out Szczesniak.

Referring to the possibility of importing liquefied shale gas from the U.S., proposed by some experts, Szczesniak notes that despite the fact that this gas would be a little cheaper than Qatar, it is not a good solution. It can be calculated that the U.S. is indeed cheaper gas at the wholesale level, a little cheaper than Russian gas, but the cost of LNG are very high and therefore does not make investment and plans of eventual import profitable.

 

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Picture ( gas terminal in Swinoujscie) retrieved from: http://www.naturalgaseurope.com/poland-considers-expansion-of-its-first-lng-terminal

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