Polish market

20 May 2019

Polish natural gas market is one of the most perspective markets in Central and Eastern Europe. The last years have demonstrated a continuous upward trend in consumption of natural gas. Poland is the only sizeable country in EU that over several years has reported continuous annual gas consumption increase. According to the forecasts of the Polish Ministry of Energy (previously Ministry of Economy) in 2030 the annual gas consumption in Poland will exceed 20 billion m3.

Natural gas consumption in Poland
[billion m3 per year]

GAS PRICES IN EU and POLAND

• Similar to Italian and Austrian gas markets Poland commands a 10-15% gas price premium over mature EU hubs such as German border price, Dutch TTF or UK NBP.

• Increasing LNG shipments to Poland and planned construction of Baltic Pipe are unlikely to decrease the cost of gas sold. Current Poland Government plan to reduce Gazprom gas supplies to a bare minimum can result in higher market gas prices.

• The World Bank forecasts EU gas prices to show mild growth between 2019 and 2023 at price levels between $6.6 and $7.1 per MMBTU.

Poland gas prices – POPAX MA index vs. average monthly TTF spot price
[EUR/MWh]

PERMIAN BASIN POTENTIAL

Permian Basin is an area of biggest potential in terms of accumulation of natural gas and crude oil in Europe, primarily in Rotliegend and Main Dolomite sections.

According to the Energy Information Administration and Polish Geological Institute in the Polish Permian Basin is located up to 100 tcf (2,83 trillion m3) of recoverable resources of natural gas and 
1000 bcf (283 billion m3) of natural gas is discovered to date.

Oil and gas fields located in the Polish Permian Basin

CONCESSIONS IN POLAND

Exploration and production activities are covered by a joint exploration, appraisal and production concession – awarded for fixed term of 30 years. Ministry of Environment has the authority to award licenses and is the Regulator for concession and mineral extraction laws.