Poland's PGNiG to raise gas output in Norway to 0.9 bln m3 in 2021
The PGNiG gas company plans to raise it annual gas production output to 0.9 billion cubic metres in Norway in 2021 after the planned acquisition of two new fields on the Norwegian Continental Shelf.
PGNiG plans to close its 2020 its Norwegian operations with an estimated output of 0.5 billion cubic metres.
PGNiG announced on Monday that in 2020 its subsidiary PGNiG Upstream Norway AS would acquire 3.3 percent of shares in the Gina Krog field from Aker BP and 6.45 percent of shares in the Kvitebjorn field, as well as 3.225 percent of shares in the Valemon field from A/S Norske Shell.
The acquired assets include two fields with four concessions. These are production fields where hydrocarbons are already produced, mainly gas that in the future can be pumped into the Baltic Pipe gas pipeline which is presently under construction.
PGNiG's CEO Jerzy Kwiecinski said during Monday's press conference that the acquisitions will allow the company to "significantly increase" its output. "Our previous plans assumed reaching 0.7 billion cubic metres next year, and now we forecast that production in 2021 will reach 0.9 billion cubic metres of hydrocarbons."
Kwiecinski added that production of hydrocarbons by the PGNiG group on the Norwegian Shelf in 2026-27 will reach the level of 2.2 billion cubic metres, nearing the planned level of 2.5 billion cubic metres.
The construction of the Baltic Pipe gas pipeline, to connect Norwegian gas fields with Poland via Denmark, is to be concluded in the second half of 2022. Its transmission capacity is to reach 10 billion cubic meters of gas per year, of which 8 billion cubic metres has been reserved by PGNiG.
Following the latest acquisitions, PGNiG Upstream Norway AS will hold shares in 32 licenses on the Norwegian Continental Shelf.