Page 6 - Euroil Week 20 2020

EurOil COMMENTARY EurOil
Poland eyes greater role for gas
Poland is developing new pipelines and LNG import infrastructure that could support an increased role for gas in its energy mix
POLAND
WHAT:
PKN Orlen wants what was to be Poland’s last coal-fired power plant to run on gas instead.
WHY:
Coal-fired power is struggling with the rising carbon costs and competition from gas.
WHAT NEXT:
New import infrastructure could increase gas’ share in Poland’s energy mix.
POLAND’S PKN Orlen, the developer behind what had been expected to be the last coal-fired power plant to be built in Poland, has said it will only move forward with the project if it runs on gas.
The announcement comes at a time when European gas prices are at an historic low, making it difficult for coal-fired generation capacity to compete in some markets. At the same time, Poland is advancing a raft of pro- jects that will enable it to import more LNG and pipeline gas – ostensibly to replace the Russian gas it receives.
Market conditions could result in Europe’s biggest coal advocate shifting its position.
The long-delayed 1-GW Ostroleka power plant project in Poland’s north-east was revived in 2016. This was a year after the ruling Law and Justice Party took office, on a platform of saving
the country’s politically powerful coal industry from collapse.
The project is to be implemented by state- owned power utilities Energa, acquired by Orlen in April, and Enea. It was supposed to use locally dug lignite as its fuel. But Orlen says it will only invest in construction if gas is used.
“We cannot act in isolation from market trends and European Union regulatory policies,” Orlen CEO Daneil Obajtek said in a statement. “The investment in Ostroleka will be conducted but it has to be based on gas technology.”
Last month another state firm PGE also ordered two gas turbines from General Electric to install at the Dolna Odra coal-fired station in Poland’s Western Pomerania region. The tur- bines are due to go live in 2023, boasting a com- bined capacity of 1.4 GW.
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