Operator turns on the turbo to boost Norway gas production into Poland

Poland's PGNiG said it has increased by 30% the volume of gas it is sending by pipeline to Poland from Norway following its recent acquisition of Kufpec's Norwegian subsidiary.

PGNiG, which is part of the Orlen Group, said its gas production in Norway had risen to an annual rate of about 4 billion cubic metres from about 3 Bcm.

It was an attractive deal for PGNiG because the Kufpec portfolio was about 80% gas, which PGNiG had previously indicated would enable it to increase production to about 4 Bcm in 2024.

The gas is transported to Poland via the Baltic Pipe gas pipeline, in which the Orlen Group said it has reserved capacity to transport slightly more than 8 Bcm per annum.

PGNiG has grown rapidly in Norway through acquisitions since 2007. A company representative said at the recent NCS Exploration Conference that PGNiG's focus is gas which is in line with the Polish state's ambition to transition away from coal-to-power.

Before closing the Kufpec deal, the company had 18 assets in production, nine assets in development, proven plus probable reserves of about 347 million barrels of oil equivalent, and average production of 88,000 boe per day.

The company also has a healthy appetite for exploration, with plans in 2024 for at least six exploration wells including a large operated wildcat called Tomcat in Block PL 1055.

“The Norwegian Continental Shelf is a key market for us, pivotal in securing natural gas needed to power our nation’s economy, drive its growth and meet the demand of our customers. We are engaged in effective efforts to maximise the share of our own gas in total volumes flowing to Poland from Norway," said Witold Literacki, acting chief executive and president of Orlen.

"Since 1 April, every additional cubic metre extracted has been directed toward Poland, fortifying the energy security of gas consumers while further optimising our gas procurement costs.”