Between March 13th and March 18th 2019, Grupa LOTOS and PGNiG completed two LNG commercial bunkering operations for seagoing ships. These were the first such operations carried out at the sea ports of Gdańsk and Gdynia. LOTOS and PGNiG are set to continue cooperation in LNG bunkering as this will enhance the competitiveness of Polish ports and promote the use of LNG, as an environmentally friendly fuel, in the Baltic Sea.

“LNG bunkering of ships is yet another of the many possible applications of gas imported by PGNiG to Poland from Qatar, Norway and the United States via the Lech Kaczyński LNG Terminal in Świnoujście. We are convinced that LNG, due to its environmentally friendly qualities, will be the future of maritime transport in the Baltic,” said Maciej Woźniak, Vice President of the PGNIG Management Board for Trade.

“Grupa LOTOS readily engages in projects involving alternative fuels, which is consistent with our Group’s growth strategy for 2017–2022. LOTOS’s ambition is to win leadership in promoting new generation alternative fuels, such as LNG. It is a clean and safe fuel. The key to further enhancing its popularity is development of LNG logistics and bunkering infrastructure. To this end, Grupa LOTOS have become involved in conducting a feasibility study for the construction of a small-scale LNG handling terminal in Gdańsk, which is partly financed by the European Union (CEF),” said Patryk Demski, Vice President of the Management Board of Grupa LOTOS S.A., Chief Investment and Innovation Officer.

“Grupa LOTOS and PGNiG have worked together for many years. PGNiG supplies natural gas to Grupa LOTOS, and Grupa LOTOS uses this fuel in oil refining. The collaboration has been very successful. Each company can draw on the experience of the other: LOTOS’s knowledge of the marine fuel market and PGNiG’s expertise in LNG,” added Cezary Godziuk, President of the Management Board of LOTOS Asfalt.

On March 13th 2019, 54 tonnes (32,000 Nm3) of LNG were pumped into the tanks of Fure Valo, a vessel owned by a Swedish shipping company which plans to increase its LNG-powered fleet to six such vessels by the end of the year. The second bunkering operation was performed on March 18th, when 18 tonnes (10,800 Nm3) of LNG were loaded into the tanks of the ‘Ireland’ vessel, from a single container.

“I am glad that, in line with our last year's declarations, we completed the first fully commercial LNG bunkering of ships in Poland. It is a milestone in the development of LNG bunkering at Polish sea ports, which will greatly enhance their competitiveness. I would like to emphasise in particular the excellent cooperation in ship bunkering both with the Port of Gdańsk and the Port of Gdynia,” said Henryk Mucha, President of the Management Board of PGNiG Obrót Detaliczny Sp. z o.o.

In line with Directive on the deployment of alternative fuels infrastructure, an appropriate number of refuelling points for LNG should be available at maritime ports by the end of 2025 at the latest. In Poland, such facilities are to be available in Gdańsk, Gdynia, Szczecin, and Świnoujście. From now on, LNG bunkering services are a fixed component of PGNiG’s and LOTOS’s offering and may be provided both at the Port of Gdańsk and the Port of Gdynia.

“Shipowners are very much interested in the bunkering service at Polish ports. The reason behind this is the growing awareness that LNG, as an alternative marine fuel, is the only mature solution that can meet both existing and future emission standards and be economically viable at the same time,” said Marcin Szczudło, Vice President of the PGNiG Obrót Detaliczny Management Board, responsible for CNG/LNG activities.

LNG will become increasingly popular also due to the adoption of the Sulphur Directive. The European Commission plans to completely eliminate emissions from maritime transport by 2050. The means that Central and Eastern European countries will have to meet more stringent standards than those binding in other parts of the world. The Sulphur Directive requires shipping companies whose vessels sail in Sulphur Emission Control Areas (SECAs), e.g. the Baltic Sea and the North Sea, to use fuels with sulphur content not exceeding 0.1%.

About Lotos

LOTOS is a Polish corporation whose business is of strategic importance to the national and European energy security, as well as to the Polish economy. It produces natural gas and crude oil from in Poland, Norway and Lithuania. The company owns a refinery in Gdańsk, one of Europe’s most advanced oil refining plants, where crude is processed mainly into high quality fuels, including the LOTOS Dynamic premium brand. It also operates a network of more than 480 service stations conveniently located at motorways and express ways, in all large cities and many other locations across the country. As a retailer and wholesaler of fuels, it has nearly a one-third market share at home. It is also Poland’s second-largest rail freight forwarder. LOTOS is a leading manufacturer of road bitumens, engine oils and lubricants used in road vehicles, aeroplanes, trains, ships and even military vehicles.

About PGNIG

Polish Oil and Gas Company (PGNiG) is the leader of the Polish natural gas market. Listed on the Warsaw Stock Exchange the company’s core business includes exploration and production of natural gas and crude oil. Its key subsidiaries import, store, sell and distribute gaseous and liquid fuels. They also generate heat and electricity. PGNiG holds stake in about 30 companies including entities that provide professional geophysical, drilling and maintenance services. PGNiG holds exploration and production licenses on the Norwegian Continental Shelf and in Pakistan. The exploration and production activity in Norway is carried out by PGNiG Upstream Norway. While Munich-based PGNiG Supply & Trading is engaged in gas trading in Western Europe, also operating the LNG trading office in London.