Polish oil importers claim to be able to replace supplies from Russia using alternative routes. These statements came in connection with the pollution of oil coming from Russia by pipeline “Druzhba”. This is not the first statement of the Polish energy independence. Previously President Andrzej Duda noted that the extension of the LNG terminal in świnoujście and gas pipeline from Norway to Poland via Denmark will provide the state “sovereignty in terms of the supply” of energy. However, experts believe that the Polish government is not ready to abandon hydrocarbons from Russia and words about the independence and the diversification needed to strengthen the position in the negotiations, in particular with Gazprom.
- The LNG tanker “Clean Ocean” with a cargo from the USA to the port of świnoujście
- © Agencja Gazata / Cezary Aszkielowicz
Polish importers of Russian oil claim that it can replace raw material supply from Russia, using alternative routes of delivery of energy. Such statements were made after reports Warsaw to stop the transit of Russian oil through the pipeline “Druzhba”.
The corresponding statement was made on the eve of the Polish Ministry of energy and the Belarusian company “Gomeltransneft” informed the Russian side about the suspension of supplies to the West. The reason for this decision in Warsaw cited the low quality of the oil, which could damage equipment of oil refineries (refinery) in Poland and Germany.
After that, the largest Polish oil refining company PKN Orlen stated that the presence of oil reserves in its vaults, as well as the contracts signed with Saudi oil company Saudi Aramco will help make up for possible lack of raw materials.
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“Said to be realized due to the policy of diversification of supply directions, which conducted the Orlen Group, is now 50% of oil, which PKN Orlen acquires plant in płock, comes not from the direction of Russia. For example, from Norway, Angola, Nigeria and Saudi Arabia”, — quotes the statement of the Polish radio RMF24.
According to a member of the management Board Orlen development Zbigniew Lisinskoga, they are willing to work without Russian oil for several months.
At the same time Lewinski stressed that Orlen received information about improving the quality of oil. “We get signals that transit oil pipeline “Friendship” on the site, which, of course, is not in Poland, the quality of the oil could be better. Expect that in the coming days, the oil quality will improve”, — quotes TASS Lisinskoga.
Another Polish importer of Russian oil company Grupa Lotos SA said it is reviewing the routes of delivery of oil via the terminal of gdańsk. On the possibility of using an alternative to the Russian route for delivery in Poland oil previously stated and the Polish Ministry of energy.
In early February, 2019 in an interview with one of the biggest Polish Newspapers Rzeczpospolita CEO of Orlen Daniel Abitec noted that his company has a policy aimed at increasing the supply of oil from Russia in order to “ensure energy security of Poland.”
However, according to published last year, according to the Central Bank of the country, 76 percent of poles purchased of oil was from Russia.
As noted in may 2018, Reuters, to ensure the diversification of oil supplies to the poles had to pay dearly in the literal sense of the words: oil comes from other countries, cost more expensive.
- PKN Orlen petrol station in Krakow
- © Beata Zawrzel
Recall that elevated levels of organic chloride in the Russian oil going to the West, first announced in Belarus last week. The Belarusian side even has suspended deliveries of diesel fuel and gasoline in Ukraine, Poland and the Baltic States. In the Russian Ministry of energy, in turn, claimed to have the situation under control and that the pollution incident of oil is technical in nature.
As noted in an interview with RT leading expert of the national energy security Fund Igor Yushkov, the situation with the supply of contaminated oil to Poland and Belarus calls for investigation, but should soon return to normal. However, according to him, in the long term, Warsaw is not going to abandon the purchase of Russian oil.
“Unlike the gas sector, where the poles are willing to buy more expensive gas at high prices, if only he were not Russian, the oil industry is less politicized,” explained RT Yushkov.
According to experts, abandoning the Russian oil, Polish companies run the risk of serious to lose.
“Oil supplies from Russia is more profitable. The cost of delivery by tanker scheme is much higher — said Yushkov. — In question and whether there is enough throughput capacity of the pipelines coming from ports to the refinery”.
To help neighbors
Information about the suspension of deliveries to Poland of Russian oil appeared on the background of statements of the Polish authorities on the procurement of other hydrocarbons — liquefied natural gas. On 24 April, the President Andrzej Duda said that Poland will soon “not only be fully sovereign in terms of gas supplies, but also provide such security for their neighbors.”
- The President of Poland Andrzej Duda.
- © prezydent.pl
As noted by the state “Radio Poland”, the President mentioned in this context, Ukraine and the Czech Republic.
The corresponding statement Andrzej Duda did in the Baltic port of świnoujście at the signing ceremony of the agreement on the allocation of funds for expansion of the liquefied natural gas terminal. These works 60% will be financed by the European Union.
As noted by “Radio Poland”, the terminal capacity will increase from the current 5 billion cubic meters to 7.5 billion cubic meters of gas per year. According to the Polish President, much of this gas will go from the United States. Speaking in świnoujście, Duda said that last fall, the Warsaw entered into an agreement with Washington for 20 years, providing for the supply of liquefied natural gas equivalent to a volume of 40 billion cubic meters, and announced the signing of new contracts with American companies.
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Also the head of the Polish state tied the achievement of future energy sovereignty of Poland not only with the expansion of an LNG terminal, but also plans for the construction of the pipeline, Baltic Pipe, which in Poland via Denmark needs to be supplied with natural gas from Norway. Draft April 15, received funding from the EU of €214,9 million
The capacity of the new pipeline, scheduled for launch in 2022, should be 10 billion cubic meters per year. According to the information portal Euractiv, the current level of natural gas consumption in Poland is 14 billion cubic meters per year.
In February, the representative of the government of Poland for energy Piotr Naimski said that Warsaw will not renew and will expire in 2022 long-term contract with Gazprom. He also highlighted the role of the gas pipeline Baltic Pipe in the process of diversification of gas supplies to Poland. In the same month, the U.S. Ambassador in Warsaw Georgette, Mosbacher said that Poland will become the center of re-export of American LNG to Europe.
According to Igor Yushkov, from an economic point of view, all these projects are untenable, even operating in Poland LNG terminal is not loaded to full capacity. The reason is that it is simply not profitable.
“Everything depends on the economy. LNG is much more expensive than Russian pipeline gas, so the poles are not used at full capacity even existing terminal,” — said the expert.
According to him, unprofitable and deliveries from Norway: gas production in this country is not growing it is not cheap, and only an infusion of money from the EU budget may force the company to take over the Baltic Pipe.
“The big question is will they be able to provide loading of the pipeline? — said the expert. — But still need to provide the Ukraine with a consumption of about 10 billion cubic meters. But then gas is simply not enough, and will have to choose to provide for themselves or Ukraine, not to mention other neighboring countries.”
According to the expert, in fact, Poland does not intend to abandon Russian gas, including the reverse pattern from Germany, and simply strengthens their negotiating positions prior to communication with the “Gazprom”.
It is as trying to get discounts for consumed gas, and about wanting to bargain more favorable to Warsaw conditions of transit of the Russian gas pipeline “Yamal —Europe”, going through Poland.
- Gas compressor station in Ukraine
- © Gleb Garanich
Ambition and money
As noted in an interview with RT Deputy Director of the national energy Institute Alexander Frolov, real Poland would not be able to replace Russian gas neither American nor Norwegian, nor in any other.
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The whole struggle of Warsaw’s diversification of supply of hydrocarbons is reduced to knocking out money from the EU budget for infrastructure projects and raising their political status as one of the important energy hubs in Europe.
“This whole of Poland: on the one hand, Imperial ambitions, and the desire to snatch money from the EU”, — said Frolov RT.
Poland traditionally favours a reduction in purchases of Russian gas by European countries, being one of the main opponents of the project “Northern stream — 2”. On 18 April the Polish Prime Minister Mateusz Morawiecki compared purchase Germany gas from our country with the acquisition of “weapons of President Putin”. Washington supports Warsaw in this matter and offers Europe to buy its energy resources.
“Poland itches Imperial complex. With the help of energy projects they are trying to increase the dependence of the surrounding States from itself”, — said Alexander Frolov.
According to experts, Ukraine is the first candidate. In 2017, the poles have already tested the possibility of supplying gas to this country. And they are, in principle, can be beneficial for Poland and the official Kiev, but not for the Ukrainian people, says Frolov. We will remind, earlier Prime Minister of Ukraine Volodymyr Groysman called on Naftogaz to find cheap gas “around the world”.
“For poles it is economically profitable. Although they will buy us LNG at exorbitant prices, but on sales, Ukraine will be able to make a profit, — said the expert. — Ukraine is also important not to ensure its own energy security, but to show that they do not use Russian gas. And then the poles offer them a great PR course: an alternative to Russian gas in the form of LNG, and even to boast that this gas from the USA”.
However, in this project, too, has its pitfalls. You will need money to modernize the Ukrainian gas transportation system, and they have not. However, despite the loud statements, Ukraine continues to buy Russian gas. But he comes from European traders who, in turn, get a percentage of resale, and therefore not interested in the emergence of competitors from Poland.
“If the pipe from Poland to Ukraine and to be built, it is unlikely for it to be pumped more than 1 billion cubic meters. European companies resell Russian gas Ukraine, also have their interest and they do not like that Poland will try they have the margin to take away” — summed up Alexander Frolov.