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PGNiG (Poland) signs a gas supply agreement with Denmark’s Ørsted

Denmark’s Ørsted has signed a multi-year contract for the sale and purchase of natural gas with Polish national hydrocarbon company PGNiG. The agreement covers a total volume of 70 TWh (6.4 bcm) to be supplied between 1 January 2023 and 1 October 2028. Under te deal, Ørsted will resell some of the natural gas that it receives from the Danish part of the North Sea (from the Tyra field, which will resume production after a redevelopment process in 2022) to PGNiG. Denmark is linked to Germany via the interconnector at Ellund and will be linked to Norway and Poland via the Baltic Pipe, which is currently under construction.

Gas production in Poland has remained rather stable since 2010 (5.7 bcm in 2019) and covers less than 30% of the country's needs. Most of Poland's gas supply comes from Russia, although imports from Russia are declining rapidly (67% in 2018, down from 89% in 2017); imports from Russia take place through a long-term contract for 9 bcm/year until 2022. In 2019, PGNiG announced that it would not renew its contract. Additional gas is imported by pipe from Germany and the remainder as LNG, mainly from Qatar. In 2019, LNG imports remained stable at 2.7 bcm (20% of total gas imports), after a 58% increase in 2018.