PKN ORLEN diversifies its natural gas supplies
PKN ORLEN has secured access to natural gas supplies from alternative sources. The company has also been registered as a participant in gas trading on the liberalised European market through the Leipzig exchange.
In pursuit of its objective to diversify its gas supplies, PKN ORLEN has concluded contracts with five suppliers: ENOI S.p.A., Shell Energy Europe Limited, EGESA GRUPA ENERGETYCZNA S.A., VATTENFALL ENERGY TRADING GmbH and Mercuria EnergyTrading. All of these are short-term contracts, running to the end of 2013.
“We keep gradually diversifying our gas contract portfolio. Last year, in addition to the main contract, we had two alternative gas suppliers, which helped us mitigate the negative consequences of supply constraints in winter. This year, we want to increase purchases from alternative sources, which will undoubtedly further enhance the security of supplies to PKN ORLEN. Following a rise in gas fuel consumption and given the favourable regulatory environment, the new suppliers can meet up to 35% of the ORLEN Group's total requirement for natural gas”, said Jacek Krawiec, CEO of PKN ORLEN.
In addition, PKN ORLEN has been admitted as a participant in gas trading on the EEX (European Energy Exchange) in Leipzig, for both spot contracts and derivatives (futures and swaps). By directly participating in the liquid gas market, the company will gain new opportunities to diversify its supplier base, while engaging in active market play and leveraging the price arbitrage between the Polish and European markets.
In PKN ORLEN's opinion, in order to take full advantage of the opportunities offered by the opening of the gas sector in Poland, it is necessary to further develop cross-border connections and introduce legal measures designed to regulate the procedure for partial supplier change.
