Showing posts with label gas. Show all posts
Monday, 14 December 2015
First LNG delivery to Swinoujscie terminal
 |
| Al Nuaman: ship delivering LNG to Swinoujscie terminal |
Construction
of LNG terminal in Swinoujscie is one of the largest investments in Polish
energy sector in the country’s recent history. LNG terminal has been built with
the purpose to diversify natural gas supplies in Poland and giving the state an
opportunity to receive price-competitive gas from the Middle East. Now, after
10 years of research, planning and construction, Poland has received the first
delivery of liquefied gas from Qatar.
The
project of construction of LNG terminal in Swinoujscie lasted for nearly 10
years and cost more than 2.5 billion złoty ( approx. 700 million euro). The
first delivery of LNG took place in the morning of 11 December,2015. The tanker
called ‘Al-Nuaman’ has delivered 120
billion scm of gas, at the moment dedicated to the number of tests/preliminary operations
that the terminal has to go through (cooling and system start-up of
installation). The second delivery of liquefied gas to
Swinoujscie, for further operational tests, will be carried out in the first
quarter of 2016.
 |
| Route that Al Nuaman took from Qatar to Poland |
The
ship, Al Nuaman, got its own fame in Poland and earned many media coverages,
due to its “historical mission”. Al Nuaman is 315 meters long and 50 meters
wide. It was built in 2009 in the shipyard Daewoo Shipbuilding & Marine
Engineering in South Korea. Q-Flex, the technology used on the ship, works as
if the ship was a giant thermos, in which gas is transported at a temperature
of minus 160 degrees Celsius (this is the boiling point of methane, the main
component of the LNG). The ship's crew is 25-35 people, consisting mainly of
highly trained officers.
Swinoujscie LNG Terminal – investment of
a strategic importance
The
terminal is a very important object for Polish energy security – thanks to its
construction, it will be possible to diversify gas supply and receive the raw
material from many, at the moment unreachable, countries who are offering competitive
price (Middle Eastern countries, USA or Canada). The initial regasification
capacity of the terminal is equal to 5 billion scm per annum and will
correspond to one-third of Polish demand for natural gas. It is taken into
consideration that in the following years the facility will expand its capacity
to 7.5 billion cubic meters a year.
The
terminal will not only diversify and secure national gas supply but it might
give Poland an opportunity for further gas trading. Poland could resell
delivered gas to the neighbouring states. It is estimated that the terminal
will be capable of receiving approx. 40 deliveries a year (covering up to 50 %
of Polish gas demand), therefore, with the developed pipeline network,
re-selling could be more than possible.
In
Poland, at the moment, the dominant entity responsible for the purchase and
sale of natural gas was PGNiG (Polish Oil and Gas Group). The company covers
about 30 percent of domestic gas demand. The rest of the demand is covered by
the import, mainly from Russia (Gazprom). After the collapse of the Soviet Union,
satellite states (including Poland, as a country that was strongly influenced
by USSR trade, even if not part of the union) were not able to bring to the
diversification of gas supplies from the direction other than the East. As a result, central/eastern part of Europe is
still characterized by a hermetic historical system of gas transmission
pipelines.
The
situation has started to change with the construction of the LNG terminal in
Swinoujscie and the floating LNG storage and
regasification unit for the terminal in Klaipeda (Lithuania). The supplier
of gas to Swinoujscie’s terminal is Qatar Gas. Klaipeda will be supplied with
gas from Statoil, at least for the following 5 years – the length of the
current supply contract.
Based on:
http://biznes.onet.pl/wiadomosci/energetyka/gazoport-energetyczne-okno-na-swiat/l8mj1s
Pictures:
Onet.pl
Monday, 28 September 2015
Poland and Lithuania combine efforts in their two joint projects: construction of electricity transmission line and gas pipeline
electricity
,
EU
,
gas
,
technology
No comments
:
As the history likes to repeat
itself, two countries that used to be one kingdom*, Poland and Lithuania are
tightening their relationship in the gas and electricity market. Two projects
of a strategic importance are on their finish line and if the forecast will fulfill itself, the whole European Union will benefit from this “re-unification”.
Thursday, 17 September 2015
Ministry of the Environment has introduced lower fees associated with mining exploration and identification of hydrocarbons
Ministry of the Environment has introduced lower fees associated with
mining exploration and identification of hydrocarbons, announced in the
official communication. The fees have been imposed on the companies, which are
seeking deposits of oil or gas, domestic as well as foreign. Charges in the
calculation of the charge resulted from the recently updated Geological Act and new Mining Law, adopted by the ministry.
Tuesday, 1 September 2015
Polish Oil and Gas Group introduces the second gas price cut in 2015
Starting today (September 1, 2015) Polish Oil and Gas Company ( in Polish: PGNiG )
has introduced reduction of natural gas (with high calorific value) prices. The price cut is
equal to 6.5% of raw material (the price cut is applicable only for the
gas itself, not “total gas bill”) for retail customers and small and medium-sized businesses. This is the second reduction of price for private customers this year and the third for wholesale
clients.
Monday, 24 August 2015
Druzbha Pipeline: agreement between Technical Supervision Office in Warsaw and the management of the pipeline upon maintanance activities and the risk assesment
Technical
Supervision Office in Warsaw, as well as national media, announced that the
office signed a cooperation agreement with the administrator of the pipeline Druzhba, for the maintanance activities and the risk assesment.
The Druzhba pipeline is the world's longest oil pipeline and in fact one of the
biggest oil pipeline networks in the world, connecting Siberia with Central
Europe.
Saturday, 20 June 2015
LNG Terminal in Swinoujscie: very important and very beautiful!
LNG Terminal in Swinoujscie is one of the biggest strategic investments
in Poland that took place over the course of last decade. It is not only one of
the most important constructions for the Polish power sector but, most likely,
also “the coolest”. Instagram account (PolskieLNG) of the terminal is full of
really beautiful pictures that not only show the size, complexity and progress
of the construction but also its magnificence and beauty.
Sunday, 24 May 2015
Tight gas in Poland - is there potential for an exploration?
The news media circulated recently that Poland has
large deposits of so-called “tight gas” which is easier in the extraction in
comparison to shale gas. Bearing in mind the initial enthusiasm and later
disappointment about exploration of shale gas, we shall take a closer look at
Polish gas market before judging its potential profitability, considering not
only the reserves of tight gas but also market environment.
Thursday, 5 March 2015
Influence of EU climate package on Polish energy independence from Russia
“Gazeta Bankowa” – one of the most influential and, in the
same time, the oldest economic newspaper in Poland, has published very
interesting article about the influence of EU’s environmental protection
(climate package) guidelines on the Polish energy independence from Russia.
Tuesday, 3 March 2015
Delays of the construction of LNG terminal in Swinoujscie
The LNG terminal, which is being constructed in
Swinoujscie, has been closely examined by the Supreme Chamber of Control ( in
Polish: Najwyzsza Izba Kontroli, NIK). NIK has been preparing report on the
emerging strategic investment in Swinoujscie, which seem to not be very
positive. Inspectors note that the LNG terminal has not been put to use, yet
and the plan for its opening is constantly rescheduled: from the end of June last year, as originally
planned, to the end of 2014, as it was written in the annex to the new agreement.
Currently, the terminal is still not in use. Due to all those factors, there is
a high risk of loss of EU subsidies for the construction of this terminal.
Saturday, 14 February 2015
Renegotiation of Yamal gas supply contract
PGNiG ( Polska Grupa Naftowa I Energetyczna; English:
Polish Oil and Gas Group) has been pursuing dialogue with Gazprom on the Yamal gas
contract renegotiation. According to experts, the chances of success of the
negotiations are slim. Experts draw attention to the situation on the international
oil and gas market, current political situation, as well as the conditions that
Russia can currently export the resources.
Tuesday, 3 February 2015
Companies are resigning from shale gas exploration in Poland
More
and more companies are leaving Poland and their work on the exploration of
shale gas. After ENI, ExxonMobil, Total,
Canadian Oil and Marathon. Chevron announced at the end of January that they
are not going to continue with execution of their exploratory concession either.
Unfortunately,
more companies are deciding to stop shale gas exploration in Poland. Companies,
which are resigning from their plans for drilling and any subsequent
exploitation of shale gas, primarily withdraw foreign companies that already
have some experience in this field. Firms that already resigned from their
Polish concessions for exploratory drilling in recent months are ENI,
ExxonMobil, Total, Canadian Oil and Marathon.
Chevron
announced on the last day of January (2015) that they will not continue the
project in Poland, as the country has ceased to be competitive compared to
other opportunities in the world. The company will continue its activities in
Romania.
Internet
portal “Forsal” points out that past September,
there were given only 68 licenses for shale gas exploration. It is 37 less in
comparison to September 2013. It seems that, over the course of 12 months,
there have been a drop in issuing concessions by more than a third. The
decrease of interest in exploration had been visible already for some time, but
it was not until the drop clearly intensified. In the whole year of 2013, total
number of active licenses decreased by 19, and in the period from January to
August 2014 – by 26.
Biztok.pl had an opportunity to talk
with Andrzej Szczesniak, fuel market specialist, who is convinced that lack of
interest in further shale gas exploration in Poland is due to its small
quantities at the reservoir and high costs of production. Furthermore, recent
commodities prices are not very favourable to the Polish shale gas. Low price
of Brent oil on world markets affects the decrease in gas prices. This in turn
causes the Polish shale gas is becoming less competitive and slows down the
interest in further exploration.
In
case of Chevron, as Szczesniak points out, financial situation of the company
had also significantly influenced decision about leaving Poland. Chevron
profits in the fourth quarter of last year fell by nearly 30 percent compared
to the same period of 2013. Chevron announced, inter alia, a significant delay in
construction of LNG terminal in Canada, translating into additional costs
related to the delay.
Last
but not least, element that might significantly influence the “shale gas
environment” is current shape of Polish mining law (for mining, we mean mining of
coal as well as exploration of fuels such as gas and oil). As many sources
point out, Europe, in comparison to the United States (where shale gas brought
revolution in the energy sector) is much more cautious in the area and attempts
to start the extraction, due to the protests by environmental and political
groups. This statement illustrates very clearly situation in Poland. To be
precise, currently the drilling contractor is responsible for mining damage
that arise during the like poisoning of the groundwater, damage from
earthquakes, road infrastructure, technical development of the area and
buildings. Not many companies, without assistance of the state, are capable and
willing to bear such costs that, sometimes, can be higher than financial bill.
Dealing with the protests of such nature can be very difficult and can
influence the image of a company for many years.
Based on:
http://www.polskieradio.pl/5/3/Artykul/1366509,Chevron-rezygnuje-z-wydobycia-gazu-lupkowego-w-Polsce
Picture:
Shale
gas exploration site, by AECOM, in Poland:
http://www.aecom.com/deployedfiles/Internet/Geographies/Europe/Projects/shale-gas-exploration_poland_mainimg.jpg
Wednesday, 24 December 2014
New agreement on the gas supply for the Swinoujscie LNG terminal
The agreement reached by the Polish Oil and Gas
Company (PGNiG) and Qatargas, postponing the date for LNG supplies PGNiG, is
beneficial from the point of view of country’s energy security. New agreement strongly
reduces the risk of the costs related to PGNiG’s missed loads.
Tuesday, 16 December 2014
Poland and Ukraine: ambitious plans of co-operation
Jan
Kulczyk, Polish millionaire leading energy company Polenergia, has very ambitious plans of co-operation with Ukraine. He plans to build a pipeline
enabling transportation of gas to Ukraine from Western Europe and a grid that
would transport electricity from Ukraine elsewhere.
Wednesday, 29 October 2014
ACER: electricity and natural gas market in 2013
ACER ( Agency for Cooperation of
Energy Regulators) has issued “Annual Report on the Results of Monitoring the Internal Electricity
and Natural Gas Markets in 2013”, publication definitely worth reading by those
interested in European electricity and gas market. Report points out many
interesting highlights about Polish markets as well.
Tuesday, 14 October 2014
Gas shale exploration in Poland under big quesition mark
Thursday, 11 September 2014
Reduced delivery of gas from Gazprom
PGNiG (Polska Grupa Naftowa
i Gazownicza; eng.: Polish Oil & Gas Company) has reported that delivery of
gas from Russia has dropped by approx. 45 %. It is still in the discussion if
the change is caused by technical problem or for commercial reason.
Monday, 1 September 2014
PGNiG plans to have 40 new drillings by the end of 2014 to explore new opportunities in shale gas
Regardless the skepticism on the
Polish shale gas and many companies deciding to quit research in that field,
Polish Gas and Oil (PGNiG) company continues to pursue the works. As onet.pl reports,
PGNiG plans to do 25 more drillings, closing 2014 with the total number of 40
drillings done.
Thursday, 28 August 2014
Poland might lose its competitve advantage in the LNG transmission in Central- Eastern Europe
Despite the fact that Swinoujscie’s LNG terminal is finished in 90 %,
many independent observers have pointed out the adverse nature of the gas
supply contract that Poland has with Qatar. In the same time, Lithuania is
proceeding with the development of their own LNG terminal that became
attractive alternative for the gas supply in all central European region. Have Poland taken unprofitable decisions in trying
to be independent from Russian gas supply?
Wednesday, 13 August 2014
Poland should not fear lack of gas supply in coming years
During the time of
crisis on the line Russia – Ukraine, Poland is always concerned about its
supply of gas. Apparently, as onet.pl points out, it seems that Poland can
import 70 % of its gas demand from the West.
Friday, 1 August 2014
new shape of gas invoices
From August
1,2014 the design of the gas bill is changing. Instead of paying for the volume
of used gas, the customer will be paying for the energy delivered.
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