The Energy Policy of Poland until 2040 (EPP2040) officially published - good prospects for gas market development in Poland

The strategic objective of the EPP2040 is to create a regional hub for gas transmission and trade (gas hub). Other significant aspects of the policy constitute final release of gas prices for all customers by 2024 and development of a gas exchange.

Increase in natural gas consumption is expected due to:

• increase in the country gasification from 65 percent to 76 percent;
• increased use of gas in the form of LNG and CNG as alternative fuels in maritime and land transport;
• increased use of natural gas in production facilities, including reserve facilities supplementing renewable energy sources, as well as in heating systems and facilities;
• effective cooperation of the gas and electricity systems (sector coupling).

In order to increase the use of gas in the economy, it is crucial to develop the gas supply and storage infrastructure. Pursuant to the assumptions of the EPP2040 in the coming years the share of LNG in natural gas consumption may reach even 30 percent. It would be accompanied by the expansion of LNG and transmission infrastructure at the borders with other countries, i.e.:

• expansion of the LNG terminal in Świnoujście to the (off-take and regasification) capacity of 8.3 bcm per year;
• construction of a natural gas regasification terminal in the Gulf of Gdansk (FSRU). The first stage, providing throughput capacity of at least 4.5 bcm, is scheduled for commissioning after 2025;
• construction of the Baltic Pipe-a gas pipeline between the gas fields on the Norwegian Continental Shelf and Poland, consisting of the Norway-Denmark and Denmark-Poland links (offshore connection) and involving expansion of the Polish and Danish transmission systems. The investment is to be completed by October, 2022 and is expected to secure import of 10 bcm and export of 3 bcm of natural gas;
• construction of interconnection with Slovakia – with the import capacity of up to 5.7 bcm and export capacity of 4.7 bcm annually;
• construction of a connection with Lithuania (GIPL) – with the import capacity of up to 1.9 bcm and export capacity of 2.4 bcm annually;
• projects of new gas interconnections: Poland – Czech Republic and Poland – Ukraine;
• expansion of the domestic natural gas transmission and distribution networks;
• projects involving the use of liquefied natural gas regasification stations with local standalone networks (so-called LNG virtual pipelines);
• expansion of the volume and off-take capacity from underground gas storage facilities to the level of minimum 4 bcm by the winter season of 2030/2031.

The Energy Policy of Poland until 2040

The Energy Policy of Poland until 2040 (EPP2040) officially published - development of the petroleum products and alternative fuels market in Poland

While the development of electromobility is a strategic project, traditional fuels will still be dominant in transport by 2040:

• development of electromobility through supporting the development of distribution networks and energy storage;
• increased use of natural gas in liquefied (LNG) and compressed (CNG) forms in transport;
• increased use of synthetic fuels made from natural gas, coal and plastics;
• use of hydrogen in transport.

EPP2040 assumes that with respect to crude oil and liquid fuels it will be necessary to develop transmission and storage infrastructure:

• construction of the second line of the Pomeranian Pipeline by 2023;
• construction of an additional section of the Boronów – Trzebinia pipeline, constituting an extension of the Płock – Koluszki – Boronów pipeline;
• increasing storage capacities for crude oil and liquid fuels.

For more details on key goals and KPIs of the Energy Policy of Poland until 2040 please follow this link to our accompanying publication.