PKN Orlen Signs Six Short-Term Agreements With Western Companies

Agreements signed by PKN Orlen on Thursday prove the changing nature of Poland’s gas market, more based on short-term deals executed in line with Western European markets.

“We think it is vital to be an active part of the changing gas market and to maintain working relations with domestic and foreign suppliers,” said Jacek Krawiec, President of the Pkn Orlen Management Board, said in a note released on Wednesday.

PKN Orlen has signed purchase agreements for natural gas with Enoi SPA, RWE Supply & Trading, Vitol, Vattenfall Energy Trading, Mercuria Energy Trading and PGNiG Sales & Trading. 

This year, the company secured direct access to wholesale trading in the Polish Power Exchange, which recently stepped up its efforts to promote liquidity in the market.

PKN Orlen recently became a member of the Polish Power Exchange and entered into the German EEX exchange, gaining direct access to wholesale trading. It also improved and its ability to leverage the potential in a deregulated Polish gas market. 

“As we see it, further deregulation of the gas market will be conditional on the development of infrastructure, especially cross-border connections, and on whether the issue of long-term contracts is finally resolved by introducing provisions whereby gas requirements could be partly satisfied through the exchange market, outside of existing agreements,” Krawiec added. 

Last year, the company poured money into its Polish shale gas program, saying it could increase its investment to €1.2 billion.