Ørsted enters into agreement on sale of natural gas to PST

Source: press release, 21 October 2020

photo: Ørsted
photo: Ørsted

Ørsted has entered into a multi-year agreement on the sale of natural gas to Polish PGNiG Supply & Trading (PST). Under the agreement, Ørsted will, in 2023 to 2028, resell some of the natural gas that Ørsted receives from the Danish part of the North Sea to PST.

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.

In the period from 1 January 2023 to 1 October 2028, PGNiG Supply & Trading (PST) expects to buy approximately 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 roughly 234 TWh, the production of biogas to be approximately 46 TWh, and the total gas consumption in Denmark to be about 115 TWh in the same period.