ORLEN increases the mining potential from domestic deposits

As Wiesław Prugar, member of the ORLEN Management Board for Upstream, emphasizes, increasing the domestic production of natural gas is a fundamental element of ensuring uninterrupted supplies of this raw material to customers in Poland.

– We are constantly looking for new deposits, but we are also intensifying extraction from existing deposits, which is an element of optimizing the use of the existing mining infrastructure. The construction of a gas compressor station in the Kościan-Brońsko Mine is the best example of the success of such a project. We are developing the exploration and mining segment in the ORLEN Group, using our best experience, knowledge and technology. This is facilitated by the integration of previously scattered domestic mining assets into one company – ORLEN Upstream Polska – explains Wiesław Prugar.

Gas from Wielopolska

The completed investment uses the effect of many synergies, for example the recovery of heat generated in technological processes, which is in line with the long-term goals of the energy transformation strategy. This solution made it possible to turn off the existing gas boiler room and save on gas consumption for heating purposes.

The Kościan and Brońsko natural gas deposits were discovered in 1995-1998, and natural gas exploitation began in 2002. Initially, the resources of both deposits were estimated at approximately 35 billion cubic meters. Currently, thanks to the construction of the compressor station, the next stage of exploitation of the largest complex of natural gas deposits in the Polish Lowland begins.

Diversification of gas supplies

According to data from the Polish Geological Institute, it is in the Polish Lowlands (Wielkopolska, Lubuskie) that the largest amount of domestic natural gas resources is located (67%). its deposits are also located in Podkarpacie (28%), as well as in the Polish economic zone of the Baltic Sea (4% of resources) and in the Carpathian area (1%). ORLEN mines in Podkarpacie, Lubuskie and Greater Poland – domestic production of the raw material covers approximately 20%. demand for natural gas in Poland. In this way, ORLEN supplies approximately 3.4 billion cubic meters. gas per year (data for 2023).

Another important source of gas supplies to the country is the ORLEN Group’s own production on the Norwegian Continental Shelf. Last year, ORLEN Group companies obtained approximately 3.1 billion cubic meters in this way. natural gas, which is pumped to Poland via the Baltic Pipe gas pipeline. Forecasts for this year are optimistic: raw material extraction from Norwegian deposits may increase up to 4.5 billion cubic meters.

In total, the ORLEN Group conducts exploration and production activities and has upstream assets on four continents. On our continent, apart from Poland and Norway, these are Lithuania and Ukraine, in North America – Canada, in Asia – Pakistan and the United Arab Emirates, and in Africa – Libya.

The company’s documented hydrocarbon resources at the end of 2023 amounted to approximately 1.3 billion boe (barrel of oil equivalent). The work is carried out on the basis of approximately 360 licenses on 239 deposits. In total, the ORLEN Group’s production from domestic and foreign deposits amounted to approximately 7.1 billion cubic meters. natural gas, which corresponded to 42%. our country’s needs.

But that’s not all. Another pillar of gas energy security is the supply of LNG (liquefied natural gas) to Poland. Last year, a record year, imports of LNG by sea were intensified, which allowed the volume of deliveries to increase to approximately 4.66 million tonnes. ORLEN imports liquefied natural gas mainly from the USA, Qatar and Norway.

Gas carriers carrying LNG go to the LNG Terminal in Świnoujście. In 2023, the volume of LNG deliveries made it possible to meet approximately 1/3 of the demand for natural gas in Poland.

ORLEN Group’s own extraction from Polish and Norwegian deposits and purchases from foreign suppliers in 2023 provided a total of approx. 16 billion cubic meters. raw material, which constituted approx. 94 percent annual demand for natural gas in Poland.

Transitional fuel for transformation

Natural gas is particularly important for Poland’s energy transformation. This energy raw material is to become a transitional fuel, enabling the abandonment of coal combustion, which will be replaced by low- and zero-emission energy sources.

Already, with ongoing decarbonization, the importance of natural gas in the national energy mix is ​​growing. Last year, it recorded the lowest share of coal (60.5%), and energy production from renewable sources increased to 27%. The increase in energy production from cold gas exceeded 40%, which means that the share of gas in the mix reaches 10%.

This raw material, as experts predict, may soon become one of the pillars of the national electricity system. The gas power plants that will be incorporated into the national energy system will be responsible for stabilizing the supply of energy from renewable sources. Thanks to their high flexibility, highly efficient gas units will increase electricity production, e.g. in windless conditions at night or in heavy clouds.

Modern energy, based on gas assets balancing renewable capacities, is an important area of ​​development of the ORLEN Group. Currently, the total capacity of four steam and gas units operating in Płock, Włocławek, Żerań in Warsaw, and Stalowa Wola (the company has a 50% share there) is 2 GW. The group also runs two investments: CCGT Grudziądz and CCGT Ostrołęka. According to forecasts, after turning on the units in Grudziądz and Ostrołęka, the ORLEN Group, which also has many RES units, will be able to produce over 17 TWh of electricity annually. This is expected to constitute approximately 10 percent. current demand for electricity in Poland.