Merger of Orlen, PGNiG to usher Poland into European league: PGNiG head

The head of the Polish Oil and Gas Company (PGNiG) Jerzy Kwieciński has said that when the company merges with Poland’s oil giant Orlen, the country would “enter the European [energy] league with the largest firm [of this kind] in the region.”

“This merger of the largest Polish companies in the gas-petroleum sector has been on the lips for many years. Many people expected this merger to take place before Poland’s accession to the EU in 2004. That’s what the Hungarians did, creating their own large multi energetic concern MOL,” Mr Kwieciński told Polish Radio on Tuesday.

The CEO said that thanks to the determination of the Polish government and Orlen CEO Daniel Obajtek, the consolidation process proceeded efficiently and when the merger of Lotos was concluded, a merger of Orlen with PGNiG would take place.

The PGNiG head continued saying that the recent discovery of natural gas deposits in the Podkarpackie province was very important “because the goal is that we have as much of our own gas as possible… It is important that we continue to discover new deposits and that we succeed in revitalising others.”

Mr Kwieciński also said that the change in the direction of gas imports was also of the essence. He said that Poland already managed to stop relying on Eastern providers of gas and recalled that as of 2022 Poland would not be bound by the agreement with the Russian gas giant Gazprom. Polish Radio’s guest also recalled that Poland has been receiving ever more gas via the LNG terminal in the northwestern city of Świnoujście. He also stressed the importance of the Baltic Pipe construction.

The Baltic Pipe is a proposed natural gas pipeline between Denmark and Poland. When completed, it will transport natural gas from Norway (19 drilling concessions on the local shelf belong to the Polish state-owned PGNiG) to Poland via Denmark and potentially also to other clients in the region. It is set to come on stream by October 2022.