ORLEN Group Enhances Energy Security with ‘Saint Barbara’ and ‘Ignacy Łukasiewicz’ LNG Vessels

ORLEN Group Enhances Energy Security with ‘Saint Barbara’ and ‘Ignacy Łukasiewicz’ LNG Vessels

(IN BRIEF) The ORLEN Group has added two new liquefied natural gas (LNG) vessels, ‘Saint Barbara’ and ‘Ignacy Łukasiewicz,’ to its fleet. These vessels, constructed by Hyundai Samho Heavy Industries, will commence sea service by the end of the year, bolstering Poland’s energy security. The ships are named after significant figures in the industry. Once integrated into the fleet, they will handle long-term and spot contracts for LNG deliveries. The ORLEN Group’s expanding fleet is critical for efficiently managing LNG shipments to meet the growing demand in Europe. The company’s LNG strategy focuses on diversifying gas sources and directions for Poland while strengthening its position in the LNG market.

(PRESS RELEASE) PŁOCK, 19-Oct-2023 — /EuropaWire/ —  PKN ORLEN (WSE: PKN), a Polish oil refiner and petrol retailer, is thrilled to announce the addition of two new liquefied natural gas (LNG) vessels, ‘Saint Barbara’ and ‘Ignacy Łukasiewicz,’ to its fleet. The ship naming ceremony took place at the Hyundai Samho Heavy Industries shipyard in Mokpo, South Korea. These vessels are scheduled to commence sea service by the end of this year, reinforcing the ORLEN Group’s capacity for natural gas procurement and enhancing Poland’s energy security.

“The latest additions to the ORLEN Group’s fleet of gas carriers mark a significant milestone in advancing Poland’s energy independence and expanding our footprint in the global liquefied natural gas market. Our resolute commitment to diversifying gas imports, primarily through LNG supplies, has been a resounding success. This strategic approach has facilitated our shift away from Russian gas, allowing us to weather the challenges of the European energy crisis. Throughout this period, we have honed capabilities that will underpin our continued efforts to diversify gas procurement sources, meeting the needs of our customers in Poland and the broader region. Natural gas, as a strategic resource, plays an essential role in serving households and supporting the chemical industry, but it also remains a linchpin for an efficient and secure energy transition. Our own fleet of LNG vessels has expanded the ORLEN Group’s logistical capacity, strengthening the reliability of supplies while reducing transport costs,” says Daniel Obajtek, CEO and President of the Management Board of ORLEN.

Meaningful Ship Names

The newly christened vessels hold significant names. ‘Saint Barbara’ pays tribute to the patron saint of miners, oil and gas workers, while ‘Ignacy Łukasiewicz’ honors the pioneering figure in the world oil industry and an advocate for Poland’s independence. These vessels, crafted by South Korea’s Hyundai Samho Heavy Industries, will operate under a long-term charter agreement with shipowner Knutsen OAS Shipping.

Versatile LNG Carriers

Upon integration into the fleet, these LNG carriers will serve both long-term and spot contracts, based on Free-On-Board (FOB) delivery terms. This arrangement places the responsibility for collecting and transporting cargoes in the hands of the ORLEN Group, the buyer.

Meeting Growing Demand

The ORLEN Group’s tailor-made fleet will play a crucial role in efficiently handling LNG shipments destined for Poland. The increasing demand for LNG in Europe, driven by events such as the war in Ukraine and disruptions in gas supplies from the east, has created a surge in demand for LNG within the region. This trend continued into 2023, with a 79% increase in LNG deliveries in the first half of the year compared to 2021. The ORLEN Group’s dedicated transport facilities have provided a competitive edge amid rising freight costs.

Enhanced Fleet and Sustainability

The ORLEN Group’s fleet will consist of eight vessels, each with a capacity of approximately 70,000 tonnes of LNG, equivalent to about 100 million cubic meters of natural gas in gaseous form. These vessels have been designed to navigate virtually any LNG terminal worldwide and feature energy-efficient solutions to reduce environmental impact.

Recent Deployments and LNG Strategy

Two vessels from the ORLEN Group’s fleet, ‘Lech Kaczyński’ and ‘Grażyna Gęsicka,’ have already been deployed in 2023. The Group’s LNG strategy aims to diversify natural gas sources and directions for Poland, with seaborne deliveries accounting for a growing share. LNG imports increased by 50% in just one year, establishing liquefied natural gas as the primary foreign energy source for the ORLEN Group.

The ORLEN Group remains committed to the President Lech Kaczyński Terminal in Świnoujście, which has received 254 deliveries totaling 20 million tonnes of LNG. The majority of these cargoes originate from Qatar and the United States, with additional contributions from Norway, Nigeria, Trinidad and Tobago, Egypt, and Equatorial Guinea. The Group has also expanded its capacity through the Klaipėda terminal in Lithuania.

Additionally, the ORLEN Group is enhancing its capacity to receive liquefied gas at domestic terminals through strategic agreements, further strengthening its position in the LNG market.

Media contact:
media@orlen.pl

SOURCE: ORLEN