Awaiting the gas revolution

| Production & Resources |

The annual consumption of gas in Poland is 14-15 billion m3. Works in Grupa Azoty Zakłady Azotowe “PUŁAWY” use 1 billion m3 per year. Consequently, it is quite logical for us to take interest in new initiatives in Poland to diversify natural gas supply.

Demand for natural gas in “PUŁAWY”

At present, the largest demand for gas is related to the production processes in various works in Grupa Azoty “PUŁAWY”. We do remember, however, that once we have built the planned power plant in cooperation with PGE, “PUŁAWY” will require another one billion m3 of natural gas every year. We are a major consumer of natural gas as it is, but shortly our demand will be much larger.

Shale gas in Puławy and Lublin area?

We follow the research into shale gas excavation prospects on Polish territory. The public opinion receives contradictory information about deposits of this resource in Poland, and consequently, our emotions on the topic are mixed. “PUŁAWY” is placed in a belt where shale gas deposits ought to exist. We base this assumption on the fact that in Lublin area there are vast deposits of coal excavated in Bogdanka coal mine. As the key purchaser of natural gas in Poland, we keep our fingers crossed and expect successes in shale gas excavation in the country.

American Dream in Poland

What will be the impact of commercial shale gas excavation on natural gas prices? The prices are certain to fall, as they did in the USA. Formerly a natural gas importer, the United States are now exporting the resource. “PUŁAWY” now pay c. 11 USD per thermal unit. We are confident that this price shall decrease when shale gas becomes available. Seeing how efficient our production is today, it is sure that we may become even more competitive and attractive for customers if we gain access to cheaper gas, which represents almost 40% of the total cost of manufacturing fertilizers.

Based on a talk by Zenon Pokojski Ph.D. at IFMA 19 Congress in Warsaw – July 26th 2013.