Poland to Merge Four Energy Groups with Aim to Make International Player
Poland laid out plans on Tuesday to merge four of its largest energy groups in a move the government hopes will create a player able to compete in international oil, gas and electricity markets.PKN Orlen, the country's largest refiner on Tuesday received conditional EU antitrust approval to take over smaller rival Lotos, and also said it planned to buy Poland's largest gas company PGNiG. Earlier this year, PKN Orlen had acquired utility Energa."We are building a powerful global multi-energy group in Poland," said State Assets Minister Jacek Sasin.Since coming to power in 2015…
Poland's Regulator Approves PGE Price Hike
Poland's energy regulator URE said on Friday it had agreed to let power company PGE hike prices, following similar approvals for the country's other three operators.Household electricity bills for PGE clients will rise by 10.5-11% on average monthly, starting from Jan. 18 until the end of March, URE said. (Reporting by Alan Charlish and Anna Koper Editing by Tomasz Janowski)
PGNiG Inks Exploration Deal with ERU
Poland's dominant gas firm, state-run PGNiG, said on Monday it was signing a contract with Ukraine's ERU Management Services on cooperation on oil & gas extraction and exploration in Ukraine."This contract makes us an active player in the region's gas market and also contributes to the safety of Poland and all countries," said Polish presidential aide Krzysztof Szczerski during a press conference to announce the agreement.(Reporting by Anna Koper, writing by Alan Charlish)
Poland's PGNiG Finalizes LNG Deal with U.S.' Venture Global
Poland's dominant gas firm PGNiG has finalised the terms of a deal to buy liquefied natural gas (LNG) from U.S. company Venture Global LNG, part of a move to cut reliance on Russian supply, the company said on Wednesday.PGNiG struck an agreement with Venture Global in June to acquire 2 million tonnes of LNG a year for 20 years, equivalent to 2.7 billion cubic metres of natural gas after regasification.It has now signed contracts with two Venture Global subsidiaries running from 2022 and 2023 respectively, under which it will buy the LNG under the Free on Board (FoB) formula…
Poland and Germany Disagree Over Planned Russian Gas Pipeline
Poland, unlike Germany, strongly opposes Russia's plan to build a new gas pipeline across the Baltic Sea, and shares U.S. opinion that the project would help strengthen Moscow's market position, Polish foreign minister Jacek Czaputowicz said.Berlin has given political support to the building of a new, $11 billion pipeline to bring Russian gas across the Baltic Sea called Nord Stream 2, bypassing traditional routes through Ukraine, despite qualms among other EU states.In July U.S. President Donald Trump publicly criticised Germany…
Energa Considers Offshore Wind Farm Projects
Poland's state-run utility Energa is interested in developing offshore wind farm projects, the head of Energa's generation unit Piotr Meler told a press conference on Thursday.Speaking at the same event, Energa's deputy head Jacek Koscielniak, said Energa was not running any analysis regarding a potential merger with another energy group.(Reporting by Anna Koper; Writing by Agnieszka Barteczko; editing by David Evans)
PGNiG Wants to Negotiate Gas Price with Gazprom
Polish gas company PGNiG said it has asked Russia's Gazprom to renegotiate the price paid for gas in its long-term delivery contract. Poland imports most of the gas it consumes from Russia on the basis of an agreement which expires in 2022. The contract, which was signed in 1996, allows for a price change every three years. PGNiG buys most of the gas it sells from Russia's Gazprom at a price it does not disclose. In 2015 PGNiG filed for arbitration with the Stockholm Arbitration Tribunal in a dispute with Gazprom, looking to change the pricing of their long-term contract.
Poland's PGNiG Has No Plans to Buy More Coal Assets
Poland's state-run gas firm PGNiG does not envisage further acquisitions in the troubled coal mining industry, the head of PGNiG Termika unit, Wojciech Dabrowski, said on Thursday. "When it comes to coal mining assets we do not envisage further acquisitions," Dabrowski told reporters when asked whether PGNiG could be interested in taking part in a potential share issue of coking coal miner JSW. Poland's energy minister said on Wednesday that JSW, EU's biggest coking coal producer, may need a share issue as it needs more money than estimated last year.
Denmark, Poland Operators Should build Baltic Pipe
Denmark and Poland should move ahead with building Baltic Pipe to link their gas grids, the head of Danish operator Energinet.dk said on Thursday. Operators said in March they would look at the project, which would secure gas supply to Poland, Ukraine, Slovakia and the Baltic states. They aim to complete a feasibility study by the end of the year. "It should have been built many years ago. Now I think it's the right moment to do it," Peder Andreasen told a discussion panel during the European Economic Congress. "That's a way to secure flows not only to Poland, but also to Ukraine, Slovakia, Baltic States and even Finland in the future.
Poland feels the pain of its love affair with coal
For generations, the region of Silesia has been at the heart of Poland's love affair with coal as a source of pride and heroism. Election to Poland's top job has depended on maintaining coal's special national status and Prime Minister Beata Szydlo, a coal miner's daughter from Silesia, swept to office in October on a promise she would ring-fence the industry's 100,000 jobs. It is a pledge she is now under almost as much pressure to break as to keep. The energy ministry has said the nation's biggest mining firm, headquartered in Silesia, risks running out of cash at the end of the month. It is a familiar cry, and in the past, funds somehow appeared.
Poland's PGNiG in Legal Battle Against Gazprom
Poland's largest gas distributor PGNiG has filed a claim against Russia's Gazprom as part of an arbitration process in which PGNiG is seeking a cut in the price of gas from its main supplier. Polskie Gornictwo Naftowe i Gazownictwo (PGNiG) did not give any details of its claim filed with Swedish arbitrators on Monday, but said the process did not exclude talks that could allow both sides to strike a deal. PGNiG, Gazprom and Poland's energy ministry declined to comment on Tuesday. Gazprom's prices for Poland, which uses around 16 billion cubic metres (bcm) of gas annually, have been among the highest in Europe and PGNiG has said it expected a discount.
Polish Wind Farm Sector Faces Uncertainty Over New Planning Rules
Poland is considering a ban on building wind farms close to houses, a move the industry fears may block new investment in renewable energy sources and bolster coal's role in the economy. Under European Union rules, Poland - which generates most of its electricity from highly polluting coal - has to produce 15 percent of its electricity from renewable sources by 2020 compared to around 12 percent now. Since 2005, installed wind farm capacity has risen from 83 megawatt (MW) to more than 4 gigawatt (GW), taking Poland closer to the target but more is needed to comply with the EU target.
EDF May Sell its Power Plant in Poland
Poland's energy minister Krzysztof Tchorzewski said on Wednesday that French utility EDF may sell its coal-fired power station in southern Poland. "Such signals (of EDF considering the sale) are coming," Tchorzewski told Polish lawmakers. He added that Polish state-run companies may consider buying out the EDF's power plant in the city of Rybnik if the price is low, but sees no pressure to start talks now. EDF is reviewing its fossil-fuel assets in continental Europe but selling them might be hard and raise less than what the cash-strapped French utility needs. (Reporting by Anna Koper; Writing by Marcin Goclowski)
Poland's LNG Terminal Likely to Hit Full Capacity by 2018
Poland's first liquefied natural gas (LNG) terminal should finally be ready for commercial use next May and is likely to reach full capacity by 2018, its operator said on Wednesday. The terminal, being built in the Baltic city of Swinoujscie, is Poland's flagship project to diversify gas supplies and reduce dependence on Russia. It had originally been scheduled to open in 2014 but has been delayed several times. Jan Chadam, head of state-owned Polskie LNG, which will operate the terminal, said he is confident of securing more supply contracts to push the terminal to close to its full capacity of 5 billion cubic metres by 2018.
Lotos Sees Oil at $80/barrel at Year End
The chief executive of Poland's No.2 refiner Lotos expects oil prices to fluctuate this year before they arrive at $80 per barrel at the end of 2015, he said on Tuesday. Oil rose to $62 a barrel on Tuesday, close to its 2015 high, supported by threats to Middle East supplies and expectations lower prices may prompt a slowdown in U.S. output. "I think that at the end of the year the oil price could be at around $80 per barrel, but fluctuations will be seen through the whole year," Pawel Olechnowicz told reporters. Lotos' biggest rival, PKN Orlen, is not betting on oil prices recovering soon either, expecting them at $80 in the longer term.
Oil's Fall Rocks Already Reeling Polish Shale Gas Hopes
Poland, once Europe's greatest hope for shale energy, is reeling from a rapid change in fortunes as U.S. companies walk away and low oil prices postpone any realistic start to commercial drilling. Facing EU environmental targets in 2020 and beyond, Poland needs to find alternatives to burning coal. It also wants to reduce imports of Russian energy by producing more of its own. Yet hopes that drilling for shale gas can replace these have dimmed, with Chevron the latest major energy company to quit Poland. ExxonMobil, Marathon and France's Total have all been and gone. A drastic cut in Poland's estimated shale gas reserves marked a first blow in 2012.
EIB in Talks to Lend $500 mln to PGE
The European Investment Bank (EIB) is in advanced talks to lend more than 2 billion zlotys ($526 million) to Poland's biggest power producer PGE to help finance its investments, the head of the EIB's Warsaw office told Reuters. PGE plans to spend around 50 billion zlotys by 2020 on new capacity and upgrading existing power generation capabilities. The EIB, which is owned by the European Union and represents the interests of member states including Poland, provided 1.7 billion zlotys of loans to the country's power producers from 2010 to 2014. "We are ready to maintain and even increase the loan volumes for the energy sector in Poland.
Poland Cuts PGNiG's Gas Tariffs for Firms by up to 5.1 pct
Poland's energy market regulator URE said on Friday it has decided to cut dominant gas distributor PGNiG's prices of high-methane gas for commercial end users by 5.1 percent and for wholesale customers by 4.7 percent. The regulator said it was acting in response to low prices on world energy markets. It has not yet decided what to do with tariffs for retail customers, though the head of the regulator has said these could also be lowered. URE also said it decided to cut tariffs for nitrogen-rich gas, which is of lower quality than high-methane gas, by 4.9 for commercial end users and 4.8 percent for wholesale customers.
Gaz-System in Talks with North American Suppliers
Gaz-System, operator of Poland's under-construction liquefied natural gas (LNG) terminal, is negotiating with three potential suppliers in North America, the company's chief executive Jan Chadam said on Monday. "We are working very intensively with two partners from the United States and one from Canada, to get gas from these countries," Chadam said. Scheduled to launch in 2015 at the Baltic port of Swinoujscie, the terminal will initially import gas from Qatar, reducing Poland's dependency on Russian gas. Poland plans to export the gas to neighbouring countries further south via inter-connecter pipelines.
Poland's Power Bourse to Lower Fees to Win New Players
Poland's POLPX power exchange will lower fees and extend trading hours this year to win new customers in its drive to become a regional trading hub, its chief executive said. A key for the exchange, which currently offers physically-settled power and gas contracts, is the development of gas trading. POLPX launched its gas market in 2012, but trading activity remained sluggish until last year, when Polish gas monopoly PGNiG made a significant increase to volumes sold through the exchange. The bourse will also endeavour to broaden…
