Statoil refuses to build gas pipeline to Poland

The agreement between Russia and Germany concerning the Northern Gas Pipeline over the bottom of Baltic Sea, reminded many Polish politicians of the project of a pipeline joining Poland and Norway. Statoil, however, which took part in failed negotiations several years ago, decided the project was not profitable. “Basing on our forecasts, the gas deliveries to Poland are too small to build a big Norway pipeline. Even, if gas was transmitted to Denmark, Sweden and southern-eastern Norway, the deliveries would still be too small for such a big investment”, Kjersti T. Morstol, outside contacts director in Statoil explained.


The company is still interested in co-operation with PGNiG, Poland’s gas monopoly, but to a smaller scale. “We will focus on other options, especially using the present gas infrastructure and developing it when necessary”, Kjersti T. Morstol added. Today, Norwegian gas is delivered to Poland from Emden via Germany. 0.5m cubic metres are bought annually. “I don’t believe the Norwegians will talk to Poland again. We are not credible in their eyes any longer. Besides, they are preparing to expand in the British market, similarly as Gazprom”, Andrzej Lipko, the former PGNiG’s CEO said.
According to recent forecasts, 24 billion cubic metres of gas will be used in Poland within the upcoming decade, up from 13.5-14 billion cubic metres today. Gas imports will have to increase to 17-18 billion cubic metres. The problem is that even if the Norwegians change their mind, their gas is expensive. Marek Kossowski, PGNiG’s CEO believed that today it would cost USD 320-340 (EUR 263.4-279.8) for 1,000 cubic metres while its Russian peer costs USD 200.

Source: APA/Puls Biznesu