Orlen Says Qatar Gas Delays Won't Affect Poland

Orlen stated that Poland has a stable supply of gas due to multiple sources of supply. Even with a temporary interruption in natural gas coming from Qatar, there will be little impact on the amount of gas consumed in Poland.

Impact of Tensions in the Middle East on Gas Delivery
Recent geopolitical issues have affected some shipping activity for energy products through the Strait of Hormuz. For example, on February 28, Iran enacted a blockade of energy shipments coming from the Gulf region because of the United States and Israel's military response to the attacks in Israel.

In addition, the Qatari state-owned energy company QatarEnergy recently announced a temporary shutdown of some operations as a result of Iranian drone attacks on its refineries.

Notwithstanding all of these developments, Orlen VP Robert Soszyński stated on Tuesday that any short-term delay in LNG delivery from Qatar would not affect the energy security of Poland. He indicated that the amount of gas consumed in Poland that is sourced from the Gulf is less than 15%. According to Soszyński, there would need to be a notable escalation of conflict throughout the world before there would be serious threats to Poland's energy security. Gas from Qatar is continuing to flow according to schedule.

Poland has increased its energy security by diversifying its sources of natural gas. The country now has a blend of sources, including pipeline imports from Norway, LNG (liquefied natural gas) delivered via ships and production of natural gas within Poland to satisfy demand.

Per Robert Soszyński, Poland uses approximately 20 billion cubic meters of natural gas every year. Of that, 8 billion cubic meters of gas comes via the Baltic Pipe from Norway; 8 billion cubic meters of LNG is delivered to the terminal at the seaport of Świnoujście, and approximately 3 billion cubic meters of gas is produced in Poland.

This diversification of supply gives Poland flexibility as it relates to maintaining a consistent energy supply even when disruptions occur in one area.

Limited Impact on Consumers
Soszyński addressed concerns regarding rising gas prices attributed to continuing international conflict in the Middle East and stated household consumers should not experience immediate price changes.

Gas prices are set for consumers at the household level in consultation with the Energy Regulatory Office, which provides a stabilizing influence on consumer pricing from a short to intermediate length of time. At this time, consumers therefore likely would not experience any direct impact from the current crisis.

However, regarding businesses, Soszyński noted that businesses purchasing gas under market conditions would be negatively impacted should overall energy prices rise in the European markets as a result of the ongoing conflict. Regardless of that potential eventuality, Poland's security of gas supply remains very strong due to the diversified sources utilized.