PGNiG Supply & Trading (PST), the international trading arm of the Polish Oil and Gas Company PGNiG signed a multi-year contract with Ørsted Salg & Service, a subsidiary of Denmark’s largest energy company Ørsted, for the sale and purchase of natural gas.
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,” said Jerzy Kwieciński, President of the Management Board of PGNiG. “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 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.”
Under this agreement, Ørsted will resell some of the natural gas that it receives from the Danish part of the North Sea to PST, for example 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.
“Ørsted is looking forward to cooperating with a recognised trading company like PST and is very satisfied with the agreement,” added Morten Buchgreitz, Executive Vice President and CEO of Ørsted Markets & Bioenergy. “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 off-take a substantial amount of the natural gas that Ørsted expects to receive.”
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 the Czech Republic and Slovakia and is about to enter the Hungarian market.