20110531-IEA-Oil_and_Gas_Emergency_Policy_Poland_2011_update_18页_1mb

Summary of Poland's Energy Overview and Policies

Core Content

Poland's energy landscape is dominated by oil and coal, with oil being the second largest energy source after coal. In 2009, oil represented 26% of total primary energy supply (TPES), while coal accounted for 54%. Natural gas made up 13% of TPES in 2009, with a steady increase over the years.

Main Points

1. Energy Outlook

• Poland's TPES is expected to reach 119 Mtoe by 2030, a 26% increase from 94 Mtoe in 2009.
• The combined share of oil and gas in TPES is projected to remain around 40% in the coming decades.
• Coal's share in TPES has decreased from 76% in 1990 to 54% in 2009.
• Natural gas's share in TPES increased slightly from 9% in 1990 to 13% in 2009.

2. Oil

2.1 Market Features and Key Issues

• Oil is a critical component of Poland's energy mix, with a high import dependency (95.3% in 2009).
• Oil demand increased from 411 kb/d in 2000 to 535 kb/d in 2009, with an annual growth rate of 3%.
• The transport sector accounts for around 60% of oil consumption in 2009.
• Diesel demand rose by 83%, while gasoline demand declined by 16% between 2000 and 2009.
• LPG usage increased significantly, almost doubling from 35 kb/d to 71 kb/d.

2.2 Oil Supply Infrastructure

• Poland has six refineries with a total distillation capacity of about 580 kb/d.
• PKN Orlen and Grupa Lotos dominate the refining industry, together accounting for over 95% of the capacity.
• The Druzhba pipeline and Pomeranian pipeline are the main routes for crude oil transport.
• Crude oil is mainly imported from Russia (94% in 2009) via the Druzhba pipeline.
• Storage capacity is significant, with a total of 72.7 million barrels in June 2010, mostly for crude oil.
• PERN, PKN Orlen, and OLPP are the main storage operators.

2.3 Decision-making Structure for Oil Emergencies

• The Ministry of Economy is responsible for energy security and emergency response.
• The Material Reserve Agency (MRA) manages government emergency reserves and monitors industry stockholding.
• The MRA is required to hold at least 14 days of net imports in oil emergency reserves.
• Industry is required to maintain mandatory stock levels, which increased from 66 days in 2006 to 76 days by 2008.
• In case of a severe crisis, the Council of Ministers may include commercial stocks in the emergency reserve.

2.4 Stocks

• Government stocks at the end of 2010 were 8.2 mb, equivalent to 13% of total stocks.
• 87% of government stocks were in crude oil, with the rest in middle distillates and motor gasoline.
• Industry stocks (mandatory and commercial) amounted to 57 mb at the end of 2010, representing 87% of total stocks.
• Industry stocks are mainly in crude oil (55%), middle distillates (27%), and motor gasoline (13%).
• Stock drawdown is authorized by the Minister of Economy, with options including auction, tender, or sales to specific entities.
• No automatic triggers for demand restraint measures are in place.

3. Other Measures

3.1 Demand Restraint

• Demand restraint is considered a secondary response measure for severe and prolonged crises.
• Measures range from information campaigns to compulsory restrictions on fuel sales and consumption.
• These measures require the ordinance of the Council of Ministers and are not planned for pre-crisis or early crisis stages.

3.2 Fuel Switching

• Short-term fuel switching from oil to other fuels is not considered an emergency response measure due to limited capacity.
• The share of oil in power generation was only 1.5% in 2008, and there is no specific policy for emergency fuel switching.

3.3 Others

• Surge production is not considered an emergency response measure due to the lack of spare crude oil production capacity.
• Indigenous oil production is minimal, covering only 5% of total demand.

4. Natural Gas

4.1 Market Features and Key Issues

• Natural gas demand increased from 13.3 BCM in 2000 to 15.8 BCM in 2009, with an annual growth rate of 2%.
• In 2009, Poland produced 5.9 BCM (16 MCM/d), accounting for 37% of domestic demand.
• Natural gas imports in 2009 totaled 10 BCM (27.3 MCM/d), with Russia as the main supplier (82% of total imports).
• The Polish Oil and Gas Company (PGNiG) is the dominant producer and importer of natural gas, controlling 98% of domestic production and nearly 100% of transmission capacity.

4.2 Natural Gas Supply Infrastructure

• The Polish natural gas grid is connected to the European network, primarily in the East-West direction.
• Key entry points include Lasów (from Germany), Drozdowicze (from Ukraine), Wysokoje (from Belarus), and Kondratki (from Belarus via Yamal pipeline).
• The gas transmission system includes 9,768 km of pipelines, 14 compressor stations, and 854 gas stations.
• PGNiG is the only owner and operator of underground gas storage (UGS) in Poland.

4.3 Emergency Policy for Natural Gas

• The government requires energy companies to maintain compulsory gas stocks, increasing from 20 days in 2011 to 30 days from October 2012.
• The Minister of Economy is authorized to decide on the use of compulsory stocks.
• GAZ-SYSTEM (TSO of natural gas) coordinates the withdrawal of compulsory gas stocks with PGNiG (Storage System Operator).
• The maximum withdrawal rate from domestic storage facilities is 37 MCM/d, equivalent to 78% of average gas demand in 2009.
• Gas-fired power plants are not legally required to hold back-up fuel stocks on site.

Key Information

• Oil Production and Demand: Oil production in 2009 was 25 kb/d, covering 5% of demand. Demand rose from 411 kb/d in 2000 to 535 kb/d in 2009.
• Import Dependency: Oil imports in 2009 were 558 kb/d, with Russia as the main supplier (94%). Natural gas imports were 10 BCM, with Russia providing 82%.
• Stocks: Government stocks are 14 days of net imports, while industry is required to hold 76 days by the end of 2008. Compulsory stocks are expected to increase to 30 days by 2012.
• Refineries: PKN Orlen and Grupa Lotos account for most of the refining capacity in Poland.
• Infrastructure: Poland has a well-developed network of oil ports, pipelines, and storage facilities.
• Emergency Policy: The Ministry of Economy oversees oil and gas emergency response, with the MRA managing government stocks and coordinating industry compliance.