Poland will soon get half of its gas from Norway
Across Jutland, in the south of Denmark, a gas pipeline is currently being built. It is connected to Europipe II out in the North Sea and ends up in Poland. Through this, 10 billion cubic meters of gas will be transported to Europe each year. Most, eight billion, are going to Poland. Today, Poland uses 20 billion cubic meters of gas a year. This means over the next few years of almost half of the Polish gas consumption supplied from Norway. Gas is used to produce electricity and heat in Poland.
Increased exports
Nikoline Bromander, who is a gas analyst at Rystad Energi, says that the pipeline will boost exports of Norwegian gas.
– This new pipeline means that Norway can export more gas to Europe. It alone can carry 10 billion cubic meters of gas and will increase the total Norwegian gas exports to Europe from 113 to 123 cubic meters a year, she tells TV 2.
Norway is considered a stable supplier for gas contracts that are valid for 15 years at a time. And both the prices and the demand for Norwegian gas have exploded after the Russian invasion of Ukraine in February this year.
– The restrictions are not on production, but on pipeline capacity and processing in Europe, says Bromander and reminds that there has been a struggle for Norwegian gas in the market after Russia has supplied gas to several European countries, including Poland.
Important pipe
The state-owned Danish Energinet is responsible for the development across Jutland. The gas pipeline runs just north of Fredericia in Denmark and project manager at Energinet, Søren Juul Larsen, shows TV 2 some of the activity. They are having a bad time since the plan is for the line to open on October 1 and be fully operational from January 1, 2023.
– This pipe is very important for Denmark, because it means that we get an extra source of supply into Denmark. We help the Poles get Norwegian gas into the country. It is both good business and we get a strong source of supply, says Juul Larsen to TV 2.
And Energinet, which owns the pipeline together with Polish Gaz System, has already entered into agreements for the sale to Poland of 80 percent of the gas. The rest of the gas will probably go into the Danish gas system and thus one can hope for slightly falling prices in Denmark, Juul Larsen hopes. 2 billion cubic meters of gas entering the Danish market means a doubling of the gas volume.
– It is Denmark that benefits from this, it helps to pay our costs, he says to TV 2.
Full party
The Danish gas pipeline is connected to Europipe II in the North Sea. They will start testing the gas pipeline on 1 October and are betting that the gas will flow fully from 1 January.
– The first of January we must deliver fully to Poland, says Juul Larsen.
– Will it be a party?
– Yes, then it will be a full party, Juul Larsen smiles broadly. And the smiles will probably also come in Norway when the pipeline is in full operation.
– We in Norway will definitely be part of that party, says Nikoline Bromander in Rystad Energy. Gas prices have risen sharply. In the revised national budget, the government has calculated an average price of gas of NOK 7.60 per cubic meter, but so far this year the prices have been more than double this. If this continues in 2023, Norway will just be on this gas pipeline to Poland selling gas for almost $ 100 billion more than planned in 2023.