ORLEN SA said it has signed an agreement to supply Ukraine’s Naftogaz with 3.5 million cubic feet (100,000 cubic meters) of natural gas.
ORLEN said it plans to import liquefied natural gas (LNG) from the USA, regasify it at the Świnoujście terminal, and then transport it through the Polish transmission system to the Ukrainian border.
The agreement marks the third contract under the two companies’ long-term collaboration framework, bringing the total contracted volume of US-sourced gas supplied to Ukraine to 300,000 cubic meters, the company said in a news release.
“The latest agreement with Naftogaz highlights ORLEN’s growing importance as a natural gas supplier in the region. Our partnership contributes significantly to strengthening Ukraine’s energy security through ORLEN’s diversified gas supply portfolio and the efficient utilisation of Polish transmission infrastructure. We remain committed to further supporting Ukraine by ensuring access to stable and diversified gas sources,” Robert Soszyński, Vice President of the ORLEN Management Board for Operations, said.
“This supply further strengthens the energy partnership between our companies and supports the delivery of a reliable resource to Ukrainian consumers. As we prepare for the next heating season, such contracts remain a key element of our strategy to diversify supply and bolster the country’s energy resilience,” Roman Chumak, Acting Chairman of the Board at Naftogaz of Ukraine, said.
In March, ORLEN signed the second contract with Naftogaz for the additional supply of about 100 million cubic meters of natural gas.
Ammonia Study Launched
Earlier in the month, ORLEN said it launched a market study and dialogue with potential suppliers of low-carbon and renewable ammonia, targeting to produce fertilizers while reducing emissions at the Anwil plant in Włocławek.
The company is also exploring the potential of using renewable ammonia as a source of hydrogen for the production of synthetic aviation fuels, the company said in a separate news release.
The market study will cover the long-term supply of ammonia produced using low-carbon hydrogen and renewable hydrogen of non-biological origin. Both types of ammonia will be used for fertilizer production and will support the decarbonization of the downstream segment, according to the release.
ORLEN said the study aims to enable a thorough evaluation of the impact on reducing greenhouse gas emissions across the entire supply chain of this raw material. The company also plans to gather information on potential equity partnerships within the ammonia value chain.
Data from the study regarding the potential supplies of ammonia produced using renewable and low-carbon hydrogen will inform its decarbonization and energy transition scenario planning, ORLEN said, adding that its demand for low-carbon or renewable hydrogen is expected to rise to approximately 350,000 metric tons per year as of 2035.
In line with its strategy, ORLEN said it aims to reduce emissions from its refinery and petrochemical production processes. The move is also related to the European Union’s REDIII Directive, under which the share of renewable hydrogen of non-biological origin for total industrial hydrogen use, except for fuel production and energy use, should reach 42 percent by 2030 and 60 percent by 2035, the company said.
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