Page 11 - GLNG Week 04 2021
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Polish gas plant to run on
Lithuanian LNG supplies
PROJECTS & LITHUANIA has announced plans to provide Poland and 2.4 bcm in the other direction. Some
COMPANIES neighbouring Poland with imported LNG to 45% of construction work had been completed
fuel a gas-fired power station planned in the by early October 2020, according to Lithuanian
north-eastern city of Ostroleka. gas system operator Amber Grid.
The Ostroleka project was originally due to Poland has its own LNG terminal, but this is
run on coal, boasting a 1-GW capacity. It was located at Swinoujscie, in the country’s north-
revived in 2016, a year after Poland’s ruling Law west near the German border. The Ostroleka
and Justice Party took office on a platform of facility will be built on the other side of the coun-
saving the nation’s coal industry from collapse. try just 200 km from the Lithuanian border.
The power plant will be But state-owned power utilities Enea and Energa Poland wants to expand the role of gas in
purchasing its gas via later decided to switch the plan to gas. power generation while also reducing its reli-
the Klaipeda terminal. Polish oil refiner PKN Orlen, which now ance on Russia for supplies. The country cur-
leads the project after acquiring Energa, has said rently gets two-thirds of its gas from Gazprom.
it will only take an investment decision if the sta- But the government has repeatedly said it does
tion uses gas. not intend to renew its long-term contract with
“According to the plans, the power plant will the Russian supplier, which is due to expire at the
be purchasing its gas via the Klaipeda terminal,” end of 2022.
Lithuanian Energy Minister Dainius Kreivys PKN reached a deal in December to co-op-
told a parliament committee meeting shared on erate with Polish gas company PGNiG on build-
YouTube last week. “This will use a third of its ing a 750-MW gas-fired plant in Ostroleka by
capacities.” the end of 2024. PKN also agreed on taking gas
The Klaipeda terminal’s operator, Klaipedos deliveries from PGNiG until 2027.
Nafta, has not commented on the matter, and nor The plan has drawn criticism from Poland’s
has PKN. influential coal industry, with mining trade
Poland and Lithuania are due to be linked via unions threatening to strike last September
a new gas pipeline by the end of this year, capable unless the government revived the plan for a
of flowing 1.9bn cubic metres per year towards coal-fired plant.
Yamal LNG’s fourth train starts production
PROJECTS & RUSSIA’S Novatek has brought on stream the progress at the Yamal LNG train has no bearing
COMPANIES fourth long-delayed production train at its on the sanctioning of Obsk LNG.
Yamal LNG venture in the Russian Arctic, its Yamal LNG’s first three 5.5mn tpy trains were
CFO said on January 26. launched between late 2017 and late 2018. Its
The 0.9mn tonne per year (tpy) mini-train fourth had been scheduled to start up at the end
is now flowing its first quantities of LNG, CFO of 2019, but has been repeatedly delayed. Russian
Mark Gyetvay said at the online European Gas press reported in early 2020 that some of its pro-
Conference on January 26. Its first full cargo will cessing pipelines had been designed incorrectly.
be loaded onto a tanker in a few months, he said. The coronavirus (COVID-19) crisis and the
“The fourth line already produces LNG,” resulting slump in gas prices last year were also
he said. “We are testing and launching it and I likely contributing factors. Its volumes are set to
think that the first loading will be made in the be sold on the spot market, where prices reached
first quarter.” historic lows in the wake of the pandemic.
The train uses Novatek’s self-developed Gyetvay also made the case for gas as a relia-
Arctic Cascade liquefaction technology, which ble form of energy, pointing to recent brownouts
the company plans to adapt for larger trains in and blackouts in California, where renewables
northern Russia in the future. Novatek hopes to have been rolled out rapidly. He also said predic-
take a final investment decision (FID) this year tions of gas losing its share of the energy mix were
on its 5mn tpy Obsk terminal, which will also greatly exaggerated, and that the LNG industry
employ the technology. But it has insisted that was working on curbing its emissions.
Week 04 29•January•2021 www. NEWSBASE .com P11