PGNiG Upstream Norway AS expects to produce an additional 0.5 billion cu m of natural gas from Norway operations this year with plans to transport gas through the 10-billion cu m/year (bcmy) Baltic Pipe for delivery to Poland following the pipeline launch (due to come online in October 2022).
In late April, Russia's Gazprom halted natural gas supplies to Poland under the Yamal contract after PGNiG said it would not pay for gas in rubles. Poland's 10 bcmy contract with Gazprom expires yearend, and Poland said it will not renew it. The increased gas will be produced from three reservoirs: Skarv, Gina Krog, and Duva.
In the case of the first two fields, increased production will be possible with modifications to each field’s plan for development and operation (PDO) to discontinue gas injection into the reservoirs. The modifications were approved by the Norwegian Petroleum Directorate. An additional 300 million cu m is expected from Gina Krog and almost 150 million cu m from Skarv field by yearend.
A production increase at Duva is possible based on free capacity at the production installation serving Gjøa field, to which Duva is tied-in. The spare capacity will be available until end August, when Nova field, also a Gjøa tie-in, will come online. Until then, PGNiG Upstream Norway plans to produce an additional 30 million cu m from Duva.
PGNiG Upstream Norway holds 11.3% interest in the Gina Krog license, 11.92% interest in the Skarv license, and a 30% interest in Duva license. The company's license partners are Equinor and KUFPEC (Gina Krog), AkerBP, Equinor, and WintershallDEA Norge (Skarv), and Neptune Energy, INPEX Idemitsu Petroleum Norge, and Sval Energi (Duva).
