State-run Polish gas firm PGNiG has agreed to buy Equinor's 42.38% stake in the Tommeliten Alpha gas and condensate field on the Norwegian Continental Shelf for $220 million, as part of its plan to diversify supplies, PGNiG said on Oct. 18.
Poland uses around 17 billion cubic metres (Bcm) of gas a year and imports more than half of that from Russia's Gazprom .
In order to reduce that reliance, Poland has increased liquefied natural gas (LNG) deliveries via a Baltic Sea terminal and also plans to build a gas pipeline to Norway via the Baltic Sea and Denmark by 2022 when the deal with Gazprom expires.
PGNiG said the stake would entitle it to recoverable reserves at the Tommeliten Alpha field of around 52 million barrels of oil equivalent (MMboe).
"This latest gas field acquisition in Norway is of special importance to us," PGNiG Chief Executive Piotr Wozniak said in a statement.
"It means a significant increase in natural gas production in the region. It is from here that we plan to send gas to Poland via Denmark through the planned Baltic Pipe pipeline."
PGNiG said the deal would help it increase gas output in Norway by 0.5 Bcm a year for the first six years of field production, which is expected to start in 2024.
The company plans to increase its gas output in Norway to 2.5 Bcm by 2022 from 0.55 Bcm in 2017. The Baltic Pipe's capacity will be 10 Bcm a year.
The Tommeliten Alpha field is operated by ConocoPhilips, which holds a 28.26% stake. Total owns 20.23% and Eni Norge 9.13%.
Recommended Reading
Sinopec Brings West Sichuan Gas Field Onstream
2024-03-14 - The 100 Bcm sour gas onshore field, West Sichuan Gas Field, is expected to produce 2 Bcm per year.
E&P Highlights: March 4, 2024
2024-03-04 - Here’s a roundup of the latest E&P headlines, including a reserves update and new contract awards.
Tyra Redevelopment Heading for Production in March
2024-02-28 - TotalEnergies said the Danish North Sea project will take about four months to ramp up and is expected to produce 2.8 Bcm/year.
Tech Trends: Halliburton’s Carbon Capturing Cement Solution
2024-02-20 - Halliburton’s new CorrosaLock cement solution provides chemical resistance to CO2 and minimizes the impact of cyclic loading on the cement barrier.
E&P Highlights: March 15, 2024
2024-03-15 - Here’s a roundup of the latest E&P headlines, including a new discovery and offshore contract awards.