Forum Ekonomiczne

„Rzeczpospolita” na Forum Ekonomicznym w Karpaczu 2024

Gas is a prerequisite for the success of the transformation

Transformation in Poland without gas will not succeed since the specificity of the domestic market requires an individual approach. Gas is the bridging fuel in this process, as it is indispensable in the energy sector as well as the heating sector.

Publikacja: 09.09.2024 04:28

Participants in the debate stated that, without gas, Poland's transformation will fail and the deman

Participants in the debate stated that, without gas, Poland's transformation will fail and the demand for the fuel will increase in the coming years

Foto: Maciej Zygmunt

As part of the XXXIII Economic Forum in Karpacz, a discussion was held on the role and importance of natural gas in the energy transition. There was complete consensus among its participants - gas will play a key role in the transition to cleaner energy sources.

“The transformation continues. This is not a fantasy, it is happening. Treasury companies, government, business, everyone is involved in the process. You have to pay attention to the challenges, of course. The role of gas will be huge, especially in the decarbonisation of district heating systems,” said Milosz Motyka, Deputy Minister for Climate and Environment.

He highlighted the diversified sources of gas supply and emphasised the potential for developing the biogas market. In doing so, he reassured that there was no risk of becoming dependent on a single energy or heat source.

"There will be investments in nuclear, offshore or onshore renewables, and hydrogen. We will not fall into the gas trap," he added.

Here in Poland we have taken steps several years ago to diversify the gas supply. We have an LNG terminal in Świnoujscie, whose capacity is currently being expanded to 8.3 bcm. Supplies of liquefied natural gas from the United States, Qatar and Norway are also received here.

The Baltic Pipe pipeline connecting the Polish gas system with Norwegian deposits has been built, with an annual capacity of 10 billion cubic metres. We also have extensive gas connections with neighbouring countries.

At the same time, work is underway on the FSRU gas terminal in Gdańsk, which is expected to be ready in 2026 with a capacity of more than 6 bcm per year.

Agnieszka Ozga, Director of the Energy Transformation Division at Gaz-System, emphasises that the transmission system is sufficiently developed to cover demand at a much higher level than today's consumption, at approximately 17 bcm per year.

Orlen is responsible for the gas supply. It buys gas abroad, both in long-term contracts and on the spot. Importantly, it also operates its own mining operations - primarily in Poland and Norway. This guarantees a secure supply of raw material to customers within the country. "Our own extraction and diversification of supply - that is what we are betting on," said Robert Czekaj, executive director of exploration and production at Orlen.

Domestically, gas production is around 3.5 billion cubic metres. On the Norwegian shelf, Orlen will increase production from 3.1 bcm in 2023 to as much as around 4.5 bcm this year. The company is striving to efficiently exploit domestic deposits. "We are constantly conducting geological surveys. We are looking at the structures where the gas is deposited. We do not rule out going even deeper. We also see investment opportunities here," the Orlen representative stated.

In-house production is an important part of the group's business.

“Here we control the entire value chain, including mining emissions, meaning the in-house production is immune to market fluctuations and politics," Czekaj said. The volumes from the company's own deposits are supplemented by purchases. It also has a diversified portfolio of contracts, allowing it to import gas into Poland from different directions and from different suppliers. The company has secured a fleet of specialised vessels for its own use to transport imported LNG, with four already in use, two more to follow next year and two more in 2026. This improves the security of logistics.

Demand for gas will continue to grow, and those using this fuel will be replacing the most worn-out coal-fired ones. They are being built in Kozienice, Ostrołęka and Rybnik. However, EU regulations do not make it easy to rely on gas, as it emphasises that gas also produces emissions. However, as the participants in the discussion pointed out, Poland's situation is different from that of Western countries. Historically, we have been dependent on coal, and even today its share in the energy mix is around 60%. Poland must fight for its specificity to be recognized on the EU forum.

"This needs to be managed. Poland's situation is quite different from that of its neighbours. Taking advantage of the Polish presidency of the EU Council, a discussion related to our transformation path must be undertaken. There is space for the Polish administration to intervene in order to try and smooth out certain processes," said Adam Wawrzynowicz, legal adviser from the law firm Wawrzynowicz i Wspólnicy.

He also highlighted the need to shift the focus from hydrogen to biomethane. “In Poland, biomethane makes gas greener and also enables longer amortisation of the constructed infrastructure. One could try to shift resources from hydrogen to developing the biomethane market.”

Prof. Jakub Kupecki, Director of the Institute of Energy - National Research Institute, emphasised that the potential of biogas is large. Biogas plants can be dispersed sources, but can also operate efficiently to serve local markets.

The deputy minister believes that the Polish presidency will be an excellent opportunity to convince the EU of its reasons, but it will also be important who becomes the energy commissioner of the new EC.

"At every step, we indicate that Poland's starting point is different because of its location, its historical past, and its infrastructure. (...) ETS2 needs to be postponed for Poland. When it comes to gas, too, Poland's situation should be taken into account. The coming years will be intensive and we assume they will be effective from the point of view of the Polish economy," Motyka said.

Foto: materiały prasowe

Foto: .

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