From mid-2022, when production is expected to resume in the Tyra field in the North Sea, production of natural gas in the Danish part of the North Sea will exceed Denmark’s demand for natural gas. And while the consumption of natural gas in Denmark is decreasing, the Danish production of biogas is increasing.
The agreement is based on existing natural gas purchase agreements that Ørsted is still party to. Today, Ørsted invests exclusively in clean energy and does no longer have any oil and natural gas production. Ørsted does not enter into new gas purchase agreements and does not renew existing long-term gas purchase agreements.
Facts about the agreement
- In the period from 1 January 2023 to 1 October 2028, PGNiG Supply & Trading (PST) expects to buy approx. 70 TWh of the natural gas that Ørsted purchases from the Danish part of the North Sea. By comparison, the Danish Energy Agency expects the North Sea production to be approx. 234 TWh, the production of biogas to be approx. 46 TWh, and the total gas consumption in Denmark to be approx. 115 TWh in the same period.
- PST is wholly owned by the Polish natural gas company PGNiG, which is 72 % owned by the Polish state.
- Under long-term gas purchase agreements, Ørsted buys some of the natural gas produced by Dansk Undergrunds Consortium (DUC) in the Danish part of the North Sea.
Facts about Poland’s energy mix
- Poland wants to reduce the share of coal in its electricity supply from 75 % to between 11 and 28 % by 2040.
- To this end, Poland wants to build out renewable energy, for instance by building offshore wind farms in the Baltic Sea. The Polish government aims to build 8-11 GW of offshore wind power over 20 years. Ørsted is in dialogue with Poland about offshore wind farm projects in the Baltic Sea.
- Poland will also be using natural gas to facilitate the transition of the large energy volumes away from coal.
- Poland wants to find several natural gas suppliers. And therefore, Poland will increase its imports of natural gas from countries such as Norway.
Facts about Ørsted’s carbon reductions
- Since 2006, Ørsted has reduced its carbon emissions by 86 %, and in terms of direct emissions, Ørsted targets carbon-neutral energy generation and operations by 2025.
- By 2032, it is Ørsted’s aim to reduce carbon emissions from its supply chain and from the purchase and resale of power and natural gas by 50 % compared to 2018.
- By 2040, Ørsted aims to become carbon-neutral, both as regards its direct and indirect emissions. The indirect emissions also include Ørsted’s supply chain as well as the purchase and sale of energy, including natural gas.
- According to the independent Science Based Targets initiative, the pace of Ørsted’s carbon emission reductions is faster than what science says is necessary to limit the global temperature rise to 1.5 degrees Celsius.