For years, Poland has been focusing on the diversification of gas sources, the development of transmission infrastructure and strengthening the domestic production of energy raw materials. In this context, the activities of the Orlen Group, especially after the acquisition of PGNiG and Lotos, become crucial. The competences and resources that, as a result of the merger of Orlen with PGNiG and Lotos, are at the company's disposal, provide an opportunity to achieve operational synergy, reduce costs and increase production efficiency. As a consequence, this will strengthen not only Orlen's position as a leader on the energy market, but also the stability of the Polish energy system.
Key own mining
The upstream segment includes activities related to the exploration and production of crude oil and natural gas, constituting the foundation for the entire supply chain of these energy raw materials. This is a key stage in the process of providing access to natural resources, which are then processed, transmitted and distributed to end recipients within the midstream (transport and storage) and downstream (processing and sales) segments.
Upstream plays a strategic role in ensuring Poland's energy security, enabling it to obtain raw materials from its own deposits, which reduces dependence on imports. Mining projects in Poland and abroad strengthen the diversification of raw material sources, which is an important element of protection against disruptions in the global supply chain. In the context of energy transformation, natural gas plays the role of a bridge fuel that is much less emissive than coal. Its use supports the development of renewable energy sources by stabilizing the energy system.
In Poland, gas and oil extraction is concentrated mainly in the areas of Podkarpacie and Greater Poland. In 2023, domestic gas production amounted to 3.4 billion m³, covering approximately 20% of national demand. Operations on the Norwegian Continental Shelf, where Orlen Upstream Norway has approximately 100 licenses, are also of key importance. Norwegian deposits supplied approximately 3.1 billion m3 of gas in 2023, and in 2024 it is planned to increase production from this area by nearly 50%, to 4.5 billion m3. Gas extracted by ORLEN from deposits in Norway is sent to Poland via the Baltic Pipe.
Synergy and optimization
Consolidation of the domestic upstream area in the Orlen Group will translate into increased efficiency, optimization of activities and strengthening of the country's energy security. Combining the resources and competences of various entities within one structure will allow achieving operational synergy. Better management of technology and mining resources will make the processes of exploration and exploitation of deposits more effective.
The Orlen Group uses modern technologies that increase the efficiency of both domestic and foreign deposits. Integrated management of these assets allows not only to maintain stable gas production, but also to strive for its maximization, which is important for Poland's energy security. It strengthens the stability of natural gas supplies to companies and individual customers.
Stability and security
Orlen also takes care of the development of storage infrastructure in Poland, currently investing in the expansion of the largest underground gas storage facility in Poland in Wierzchowice. As a result, the national storage potential will increase by as much as ¼ to over 4 billion m3. Underground gas storage facilities allow you to maintain reserves necessary to ensure continuity of supplies during periods of peak demand, especially in the winter months. Such actions minimize the risks associated with sudden market disruptions and strengthen the resilience of the national energy system.
It should also be remembered that in the face of the energy transformation, natural gas plays the role of a stabilizer of the energy system, enabling a gradual abandonment of coal and supporting the development of renewable energy sources.
The Orlen Group, as a strong and multi-energy concern, effectively combines goals related to energy security, infrastructure development and transformation towards a low-emission economy, contributing to the long-term stability and energy independence of Poland and the region. .
ORLEN promotional material.