ORLEN books 100% regasification capacity of Gdańsk FSRU terminal

Business Developments & Projects

August 18, 2023, by Aida Čučuk

Poland’s GAZ-SYSTEM and ORLEN Group have signed an agreement for the provision of regasification services at the FSRU terminal in the Gulf of Gdańsk.

The agreement follows the open season procedure in which ORLEN submitted an order covering 100% of the regasification services offered by GAZ-SYSTEM. To note, the FSRU project is designed to perform a regasification process of 6.1 bcm of gaseous fuel per year.

Anna Łukaszewska-Trzeciakowska, Secretary of State and Government Plenipotentiary for Strategic Energy Infrastructure, who attended the signing ceremony, emphasized the strategic importance of this project as well as “the pivotal role of LNG supplies,” noting:

“Last year, as a result of the political impact of the war in Ukraine, the directions of natural gas supplies to the European Union (EU) have been completely reorganized. We can see over 60% increase in LNG supplies from the global market. Poland, as a beneficiary of this trend, seeks to become a gas hub for Central and Eastern Europe.”

Marcin Chludziński, President of GAZ-SYSTEM Management Board, commented: “The FSRU terminal project, market-confirmed by ORLEN Group, constitutes another element of the country’s energy security scheme based on sound economic rationale. Following the recently completed interconnections with Denmark, Lithuania and Slovakia and the expansion of the LNG terminal in Świnoujście, this project will increase the diversification of natural gas supplies to Poland and the Intermarium region.”

To remind, in response to the growing interest in LNG supplies, GAZ-SYSTEM is already undertaking measures to expand the regasification capacity of the FSRU terminal.

Andrzej Kensbok, Vice-President of GAZ-SYSTEM Management Board, noted: “Given the growing interest across the entire CEE region in the diversification of gas supply sources based on LNG, we are currently conducting an open season procedure for the second FSRU terminal. Assuming its positive outcome, we could launch the second FSRU, which would allow us to increase the regasification capacity of the facility by an additional 4.5 bcm of gaseous fuel per year.”

GAZ-SYSTEM launches binding open season procedure for Gdańsk FSRU 2

Currently, the FSRU terminal in Gdańsk is at an advanced design stage. In July this year, GAZ-SYSTEM completed the process of obtaining administrative decisions for all three onshore gas pipeline projects and it is expected that their construction will commence in 2024. As for the offshore part, the pending works include the design of a mooring berth for the FSRU terminal together with the offshore section of the gas pipeline, which will run on the sea bed in the Gulf of Gdańsk.

As for ORLEN, it is reported that LNG constitutes one of the pillars of the company’s diversification strategy and the development of long-term commercial potential.

Daniel Obajtek, President of the Management Board of ORLEN, stated: “The fuel and energy security of Poland has always been and continues to be our priority… Owing to the merger with LOTOS, PGNiG and Energa, we have the potential to engage in further projects that contribute to the energy independence of the country and the region. One of such projects is the planned floating LNG terminal in the Gulf of Gdańsk, the entire regasification capacity of which has just been booked by ORLEN.”

“Including President Lech Kaczyński’s LNG terminal in Świnoujście already in operation, it will enable the company to receive all the LNG to be supplied under long-term contracts we have signed. At present, this volume accounts for almost 14 bcm per year. Such quantity of gaseous fuel, supplemented by imports from Norway and our own domestic production, will allow us not only to fully satisfy the needs of Polish customers but also to offer gas to neighbouring markets.”