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
BP Restructures, Reduces Executive Team to 10
2024-04-18 - BP said the organizational changes will reduce duplication and reporting line complexity.
Mitsubishi Makes Investment in MidOcean Energy LNG
2024-04-02 - MidOcean said Mitsubishi’s investment will help push a competitive long-term LNG growth platform for the company.
Mexico Pacific Appoints New CEO Bairstow
2024-04-15 - Sarah Bairstow joined Mexico Pacific Ltd. in 2019 and is assuming the CEO role following Ivan Van der Walt’s resignation.
1Q24 Dividends Declared in the Week of April 29
2024-05-03 - With earnings season in full swing, upstream and midstream companies are declaring quarterly dividends. Here is a selection of dividends announced in the past week.
Keeping it Simple: Antero Stays on Profitable Course in 1Q
2024-04-26 - Bucking trend, Antero Resources posted a slight increase in natural gas production as other companies curtailed production.