21 October 2020
PGNiG Supply & Trading GmbH (PST), the international trading arm of the Polish Oil and Gas Company (PGNiG), and Ørsted Salg & Service A/S (Ørsted), a subsidiary of Ørsted A/S, have signed a multi-year contract for the sale and purchase of natural gas. The agreement covers a total volume of approx. 70 TWh (6.4 bcm) to be supplied between January 01st 2023 and October 01st 2028.
With this agreement, PST continues to grow and strengthens its position in Northern Europe and particularly in the Danish wholesale market. Denmark is linked to Germany via the interconnector at Ellund and will be linked to Norway and Poland via the Baltic Pipe which is currently under construction.
“We are pleased that we can cooperate with Ørsted who is a trustworthy and highly valued partner and an important player in the Danish market. The agreement between Ørsted and PST provides a solid basis for a further strengthening of relations between both companies. It also means more security and diversification in the European gas market. Specifically, after a commissioning of the Baltic Pipe, PGNiG Group will be able to deliver gas supplied by Ørsted in Denmark to Poland as a part of its diversified natural gas portfolio,” said Jerzy Kwieciński, President of the Management Board of PGNiG SA, the sole owner of PST.
“Ørsted is looking forward to cooperating with a recognised trading company like PST and is very satisfied with the agreement. When the Tyra field resumes delivery to Denmark, the amount of natural gas from the Danish North Sea in the market will increase significantly, and with this agreement PST will offtake a substantial amount of the natural gas that Ørsted expects to receive,” said Morten Buchgreitz, Executive Vice President and CEO of Ørsted Markets & Bioenergy.
Under this agreement, Ørsted will resell some of the natural gas that it receives from the Danish part of the North Sea to PST, e.g., from the Tyra field, which is Denmark’s largest gas reservoir. Currently, the Tyra platform is under redevelopment to extend its operational life by at least 25 years. For this reason, production from Tyra was halted in 2019 and is expected to resume in 2022.
In addition to expanding its activities in Northern Europe, PST actively pursues expansion in the Central Eastern European wholesale gas markets. In 2020 the company started trading in Czech Republic and Slovakia and is about to enter the Hungarian market. Through its Branch in London, PST is also constantly developing competencies in the LNG area. In the last three years, PST has completed numerous spot and midterm transactions, sourcing gas worldwide and thus has established a strong presence for PGNiG on the global LNG market.
About PGNiG Supply & Trading GmbH
Established in 2010, PGNiG Supply & Trading GmbH (PST) is a trader and supplier of natural gas and electricity in Western as well as Central Eastern European energy markets. Based in Munich, Germany, the company has a Branch in London which is responsible for short- and midterm LNG trading and optimization. PST is wholly owned by PGNiG SA, the leader of the Polish gas market and one of the biggest Polish companies listed on the Warsaw Stock Exchange in terms of value. The PGNiG Group employs 25 000 people and operates, among others, in Poland, Norway, Germany, Pakistan and the United Arab Emirates. In 2019, PGNiG Group’s revenue was over PLN 42 billion (EUR 9.4 billion).
About Ørsted A/S
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants, and provides energy products to its customers. Ørsted ranks #1 in Corporate Knights' 2020 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader on climate action. Headquartered in Denmark, Ørsted employs 6,000 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2019, the group's revenue was DKK 67.8 billion (EUR 9.1 billion).
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