State-run Polish gas firm PGNiG has agreed to buy Equinor's 42.38% stake in the Tommeliten Alpha gas and condensate field on the Norwegian Continental Shelf for $220 million, as part of its plan to diversify supplies, PGNiG said on Oct. 18.
Poland uses around 17 billion cubic metres (Bcm) of gas a year and imports more than half of that from Russia's Gazprom .
In order to reduce that reliance, Poland has increased liquefied natural gas (LNG) deliveries via a Baltic Sea terminal and also plans to build a gas pipeline to Norway via the Baltic Sea and Denmark by 2022 when the deal with Gazprom expires.
PGNiG said the stake would entitle it to recoverable reserves at the Tommeliten Alpha field of around 52 million barrels of oil equivalent (MMboe).
"This latest gas field acquisition in Norway is of special importance to us," PGNiG Chief Executive Piotr Wozniak said in a statement.
"It means a significant increase in natural gas production in the region. It is from here that we plan to send gas to Poland via Denmark through the planned Baltic Pipe pipeline."
PGNiG said the deal would help it increase gas output in Norway by 0.5 Bcm a year for the first six years of field production, which is expected to start in 2024.
The company plans to increase its gas output in Norway to 2.5 Bcm by 2022 from 0.55 Bcm in 2017. The Baltic Pipe's capacity will be 10 Bcm a year.
The Tommeliten Alpha field is operated by ConocoPhilips, which holds a 28.26% stake. Total owns 20.23% and Eni Norge 9.13%.
Recommended Reading
EIA Reports Natural Gas Storage Jumped 58 Bcf
2024-09-19 - The weekly storage report, released Sept. 19, showed a 58 Bcf increase from the week before, missing consensus market expectations of 53 Bcf, according to East Daley Analytics.
China’s Stimulus Could Reignite Fuel Demand Long-term
2024-09-25 - In China’s biggest stimulus package since the COVID-19 pandemic, the government is attempting to reverse the country’s recent deflationary trend and boost fuel demand.
EIA: Natural Gas Storage Report (Nearly) Meets Market Expectations
2024-09-26 - Natural gas prices held steady on Sept. 26 after rallying through most of the month.
Hotter Temps Drive Japanese Demand for Spot LNG from US
2024-09-11 - Above-average temperatures are forecast for most regions of Japan through early October, compelling the country to seek prompt LNG, potentially from the U.S., to cover extended summer-related electricity demand.
Barnett Shale’s BKV to Launch Delayed IPO of Natgas-focused E&P
2024-09-20 - BKV Corp. has positioned itself as an LNG supplier near Gulf Coast markets with production averaging 718 MMcfe/d across about 460,000 Barnett acres, supported by 778 miles of associated gas gathering pipelines and 65 compression units.