Poland’s ORLEN Group boosts LNG fleet with two new carriers

In a significant stride for the global liquefied natural gas (LNG) market, ORLEN Group is set to augment its LNG fleet with two new carriers, ‘Saint Barbara‘ and ‘Ignacy Łukasiewicz‘. Positioned for sea service by year’s end, these vessels will amplify ORLEN’s gas procurement abilities, accentuating Poland’s energy fortification.

ORLEN Group’s New Additions: Pioneering Poland’s Energy Future

Following a ceremonious christening at the Hyundai Samho Heavy Industries shipyard in Mokpo, South Korea, these new carriers are primed to make their mark in advancing Poland’s energy independence. CEO and President of the Management Board of ORLEN, Daniel Obajtek, highlights, “The latest additions to the ORLEN Group’s fleet of gas carriers mark a significant milestone in advancing Poland’s energy independence and expanding our footprint in the global liquefied natural gas market. Our own fleet of LNG vessels has expanded the ORLEN Group’s logistical capacity, strengthening the reliability of supplies while reducing transport costs.”

Unveiling ORLEN’s new LNG vessels: Strengthening Poland’s energy security. Photo courtesy of ORLEN.

Significance of the New Vessels: More Than Just Names

‘Saint Barbara’ resonates with the legacy of the patron saint of miners and gas workers, while ‘Ignacy Łukasiewicz’ pays tribute to a luminary in the world’s oil industry. Operating under a long-term charter with shipowner Knutsen OAS Shipping, these carriers will serve both long-term and spot contracts. The ORLEN Group will handle cargo collection and transportation in line with the Free-On-Board (FOB) delivery terms.

Addressing the Surge in LNG Demand

The recent Ukraine conflict, coupled with gas supply interruptions, ignited a marked surge in Europe’s LNG demand. The ascending trend in LNG imports to the EU was evident in the first half of 2023, registering an impressive 79% rise compared to the same period in 2021. With such a spike, dedicated transport facilities like those owned by the ORLEN Group have captured a competitive advantage.

ORLEN’s Fleet: Poised for Global Operations

ORLEN’s current fleet expansion aims to have a total of eight vessels, each with a substantial 70,000-tonne LNG capacity. Designed for global operation, these gas carriers boast energy efficiency solutions, such as electricity management and LNG recovery systems for evaporated gas during transit.

Ongoing Operations and Strategic LNG Focus

Ships from ORLEN’s fleet, including ‘Lech Kaczyński’ and ‘Grażyna Gęsicka’, have been operational this year, marking successful deliveries to Poland. LNG remains a cornerstone of ORLEN’s strategy, showcasing an increased import share, highlighting LNG as ORLEN’s primary foreign energy source. The President Lech Kaczyński Terminal in Świnoujście remains ORLEN’s primary LNG reception point, supported by the Klaipėda terminal in Lithuania.

Future Initiatives for LNG Growth

Beyond fleet expansion, ORLEN is boosting its domestic LNG reception capacities. A recent partnership with GAZ-SYSTEM is set to further ORLEN’s annual LNG delivery intake by up to 58, marking a pivotal shift in Poland’s energy landscape.