Poland’s Comprehensive Gas Supply Security Strategy 2005-2013
The present gas supply security strategy provides the national framework for a key strategic issue, serving as a point of reference in the gas sector.
The overall objective is to harmonize gas supply security with political and economic strategies, and developmental plans to ensure sufficient, reliable and affordable gas supply for Polish domestic consumption in the following period. According to the Polish Energy Law Act (2005), the Polish Government is obliged to publish every four years a document on Energy Policy. The recent events of the international gas market, howwever, require Poland to develop her gas strategy within and in harmony with its Energy Policy, as a guidance to represent the country’s interests in an unified way. Objective 1. Ensuring necessary volumes and reliable supplies
Gas, being a significant energy source for the country and its economy, should be taken as a key strategic issue in international relations. The purchase of gas through the Yamal pipeline from Gazprom, Russia as well as the transmission of gas to Germany, the maintenance of the pipeline and management of sheduling, volumes and storage involves several companies and parties, firstly, EuRoPol GAZ, a joint venture of Gazprom and PGNiG, founding the most important long term partnership between Russia and Poland. Even though Poland is still relying heavily on other energy sources, for example coal, it is anticipated that Poland's total demand for natural gas will increase from 10 billion cu m (353 billion cubic ft.) to 22-27 cu m (777 to 954 billion cubic ft.) by 2010 due to restructuring and increased demand. The sourcing of the present demand and the increased volume is subject of the present strategy. Diversification and Development of pipelines
Since gas is expected to be used more widely both by industrial and domestic consumers, it is essential that transmission should be well organized. For this reason, Poland expects to expand its natural gas distribution system by adding 43,000 to 58,000 kilometers of new distribution pipelines by 2010. Diversification of Sourcing
The diversification of sourcing in case of more intensive gas reliance is preferable. It can assure long term independence and security, as well as cost efficiency and better bargaining position. The following options should be investigated for this purpose: - source from cheaper Asian countries, eg: Kazakhstan, Turmenistan, Azerbaijan, etc, through existing pipeline. This option can be used to get cheaper supplies above the contracted Russian amount. For the delivery of the gas the existing Ukraininian, Belarussian pipelines are used, where transfer prices are payable. - sourcing LNG from other countries, eg: Norway, Quatar or other Arabic countries. In order to receiveLNG transports, an LNG terminal, at Swinoujscie, at the northwestern tip of Poland's Baltic Sea coast with a capacity of 5 billion to ultimately 7.5 billion cubic meters of gas needs to be constructed by 2011. - Build connection to the Scandinavian gas pipe system
If continuous transmissions with favourable conditions are contracted, the construction of a shorter link can be economical on the long run. Connecting pipes towards Germany, Denmark and Norway are to be built in order to make sourcing and transmission possible. - Explore and exploit national reserves
Domestic natural gas in Poland are used to cover approximately 22-30% of home needs. Gas reserves are estimated at 5.1 trillion cubic feet (TCF). In 1998, to meet her natural gas needs of 444 billion cubic feet (BCF), Poland produced 181 BCF and imported 281 BCF. Special attention should be paid in the near future to the coalbed methane, ie. shale gas reserves. Unfortunately, production costs are still relatively high and the full economic potential is yet to be assessed. However, further feasibility studies...
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