Poland to Buy Danish Gas from Orsted

Polish state monopoly PGNiG Supply & Trading has added Denmark to its list of suppliers, announcing October 21 a medium-term gas supply contract with Danish Orsted. The contract covers about 6.4bn m³ over almost six years, starting  January 1 2023 and expiring October 1 2028.

The gas, some of which will come from the Tyra field which operator Total is now redeveloping, can reach the Polish or German markets through the Baltic Pipe, which will also carry Norwegian gas and which is under construction, or the Denmark-Germany onshore link.

PGNiG said the contract represented more security and diversification in the European gas market. "Specifically, after a commissioning of the Baltic Pipe, PGNiG will be able to deliver gas supplied by Orsted in Denmark to Poland as a part of its diversified natural gas portfolio," CEO Jerzy Kwiecinski said.

Orsted's head of markets and bioenergy Morten Buchgreitz said PST was a recognised trading company and he was "very satisfied with the agreement. When the Tyra field resumes delivery to Denmark, the amount of natural gas from the Danish North Sea in the market will increase significantly, and with this agreement PST will offtake a substantial amount of the natural gas that Ørsted expects to receive."

Under this agreement, Orsted will resell some of the natural gas that it receives from the Danish part of the North Sea to PST. Danish gas production is expected to be 3bn m³ in 2024 and Tyra is expected to be operational once more in 2022. Orsted is quitting fossil fuels in favour of biomass and wind energy.