Polish state oil and natural gas company, PGNiG, has announced a new deal to purchase natural gas from Danish offshore wind operator, Orsted, Kallanish Energy reports.
Under the agreement, PGNiG Supply & Trading (PST) will buy 6.4 billion cubic meters (Bcm) of gas from Orsted Salg & Service A/S. The supplies, which correspond to approximately 70 terrawatts, will be carried out between January 1, 2023 and October 1, 2028.
Orsted will resell gas it receives from the Tyra gas field in the North Sea, Denmark’s largest gas reservoir. Currently under redevelopment to extend its operational life by at least 25 years, the Tyra field is expected to resume operations in 2022 and exceed Denmark’s demand volumes for natural gas.
PGNiG stated the deal strengthens PST’s position in the Danish wholesale market and, following the construction of the Baltic Pipeline, will deliver gas supplied by Orsted in Denmark to Poland as a part of its diversified natural gas portfolio.
“The agreement between Orsted 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,” said Jerzy Kwieciński, president of PGNiG.
PST is actively pursuing expansion in the Central Eastern European wholesale gas markets. This year the company started trading in Czech Republic and Slovakia, and is poised to enter the Hungarian market.