ORLEN Group Signed Natural Gas Supply Contract with ZSE

SEATTLE (Oil Monster): Polish ORLEN Group, through its subsidiary PGNiG Supply & Trading, has entered into a contract with Slovakia’s ZSE Group towards supply of natural gas. The agreement will be valid until the end of 2025.

As per terms of the contract, the gas sourced from the U.S. and other countries will be delivered in liquefied form to Klaipeda, Lithuania liquefied natural gas (LNG) terminal. After regasification, the gas will reach the Polish gas system through the Lithuania-Poland pipeline, which in turn will reach Slovakia through the Vyrava interconnector. 

ALSO READ:

ORLEN Secures a High Level of Natural Gas Production in Norway

Orlen Scraps Venezuela Oil Deals After Heavy Losses

Further to the signing of the agreement, ZSE Group has become the first company in Slovakia to import natural gas across the country’s northern borders.

ORLEN Group has not yet disclosed the exact volume of gas supplies. However, it is estimated that the contract will ensure supply of gas sufficient to meet approximately one-third of the total annual requirement by ZSE Group to meet the demands of its customers across the country. Incidentally, ZSE Group is the country’s second largest gas supplier, after the state-controlled SPP.

The contract with ZSE demonstrates increasing cooperation among companies in the Central and East European (CEE) region towards diversifying its supply sources and enhancing gas security. It must be noted that Slovakia had been entirely dependent upon Russian gas until the invasion of Ukraine by Russia.