Polish Orlen Gets 2 Of 8 Gas Carriers From S. Korean Ulsan

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Credit: toan-chu-unsplash

A recent news article published in the TVP World states that Polish Orlen receives 2 out of 8 gas carriers from S. Korean Ulsan: CEO.

Effective import of LNG from the US

“In [South] Korean Ulsan, we have received two out of eight gas carriers commissioned by the Orlen Group,” Daniel Obajtek, the CEO of Poland’s gas giant Orlen, said on Tuesday in a tweet, adding that “having our own fleet will allow us to effectively import LNG, first and foremost from the U.S.”

During a ceremony in Ulsan, the CEO stressed that “maritime deliveries already satisfy 30 percent of Poland’s demand today and, alongside the Baltic Pipe, are the most crucial source of gas for Poland.”

“Natural gas and crude oil diversification are crucial for the energy security of Poland,” Mr Obajtek said in Orlen’s statement, recalling that Poland was already importing 100 percent of its gas from providers other than Russia. “It’s a result of consistently carried out LNG import policy.”

Paying respect to victims of the 2010 Smoleńsk plane crash

On Wednesday, the two gas carrier ships were named after late Polish President Lech Kaczyński and late Regional Development Minister Grażyna Gęsicka, both of whom died in the 2010 presidential plane crash in Smoleńsk, Russia, the cause of which has remained a mystery due to suspicious activities on the part of Moscow which aimed to preclude Polish investigators from accessing the wreck and other vital evidence.

Orlen said that the selection of such names “is a symbolic gesture of remembrance for late President of Poland Professor Lech Kaczyński and late Regional Development Minister Grażyna Gęsicka for their dedication to Poland’s energy independence and their engagement in supporting Poland’s economic development.”​​

Cutting-edge ships to start delivering gas soon

The two vessels were constructed in 18 months in the Hyundai Heavy Industries (HHI) shipyard in Ulsan, South Korea. “Cutting-edge” is how Orlen described the ships. Orlen will enjoy exclusive exploitation rights to the vessels tailored to suit the company’s needs. “The vessels are characterised by, among others, a very low-risk factor of losing cargo due to evaporation. Moreover, they will be capable of transforming evaporated gas back into liquid form thanks to on-board liquefaction installation,” Orlen stressed.

The methane carriers chartered by Polish Oil and Gas Company (PGNiG) from the Orlen Group will be owned and operated by the Norwegian company Knutsen.

Trygve Seglem, the owner of Knutsen OAS Shipping, said the company was very content with the long-term cooperation established with PGNIG Supply and Trading, adding that secure, reliable and environment-friendly gas carriers will help Orlen pull it off in the LNG business.

The PGNiG’s daughter company PGNiG Supply and Trading signed a total of eight gas carrier charter agreements. The chartering period will hold for 10 years, according to Orlen. The vessels will be built in Ulsan by HHI. Each ship boasts a length of nearly 300 meters with a total LNG cargo space of 174,000 cubic meters, in other words, around 70,000 tonnes of gas.

“It equals the amount used up by all Polish households per week. The volume will ensure versatility and the possibility of receiving from and delivering gas to LNG terminals inaccessible to large gas carriers,” Orlen said.

The company also noted that the engines of the carriers can run on engine oil as well as natural gas, which will ensure they meet, and also will in the future, environmental maritime transportation norms.

The “Lech Kaczyński”, which has already passed maritime tests, will enter service in the beginning of 2023. “Grażyna Gęsicka”, meanwhile, will enter service in mid-2023. Two more gas carriers will be delivered in 2024 and four more in 2025.

“The ships will be used to carry out long-term contracts as well as in the free-on-board formula,” the Polish company said.

Orlen stressed that “having our own fleet will… strengthen the position of the company in the global LNG market.”

The HHI shipyard in Ulsan is one of the most important facilities of this kind in the world. Over 2,300 ships were splashed down since the production began thereat in the 1970s. The two carriers produced for Poland are numbers 3243 and 3244.

Following the PGNiG takeover in early November, Orlen stressed that with previous Energa and Lotos groups fusions, the Orlen Group has been Central Europe’s largest multienergy concern, one of the largest in Europe and was 155th in the world in terms of income.

 

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Source: TVP World

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