ORLEN wins gas supply contract with Slovakia’s ZSE Group amid diversification efforts

In a significant move to diversify energy sources and strengthen regional security, ORLEN, through its subsidiary PGNiG Supply & Trading, has entered into a substantial contract with the Slovak company ZSE Group. This contract is set to fulfill about 30% of ZSE’s annual natural gas needs through the end of 2025.

Under the terms of the agreement, ORLEN will supply ZSE Group with natural gas, primarily sourced from the United States and delivered in liquefied form to an LNG terminal where ORLEN Group has secured long-term capacity. The gas will be regasified at the terminal and transported through a pipeline network connecting Lithuania and Poland into the Polish gas system, subsequently reaching Slovakia via the Vyrava interconnector.

This deal marks a historic development as it represents the first time a Slovak company has imported natural gas from across the country’s northern border. The volume of gas stipulated in the contract addresses approximately one-third of the annual demand of customers served by ZSE Group, positioning it as a critical move for the second-largest gas supplier in Slovakia.

The realization of this contract was facilitated by recent advancements in gas interconnection infrastructure between Poland and other Central and Eastern European (CEE) countries. These developments have allowed ORLEN Group to not only meet domestic gas supply demands but also to extend its reach across international borders, leveraging its diversified gas procurement strategy.

This contract not only underscores the importance of international cooperation in the energy sector but also highlights the strategic role that infrastructure development plays in enhancing energy security across Europe. By securing a diversified supply of natural gas, ORLEN and ZSE Group are setting a precedent for other CEE countries to follow, potentially leading to more robust energy networks and reduced dependency on single source suppliers.

The pricing of the contract, which adheres to market rates, reflects the competitive nature of the current global energy market and the strategic importance of securing reliable energy sources at equitable costs. As ORLEN and ZSE Group forge ahead with this partnership, it may prompt further collaborative ventures within the region, aiming to bolster energy independence and security amid fluctuating global energy dynamics.

As this partnership matures, it will likely serve as a benchmark for similar agreements in the region, promoting not only economic stability but also technological and operational advancements in the energy sector of Central and Eastern Europe.