AN EXCITING NEW
CO-OPERATIVE GAS PROJECT
POLAND 1918:
REGAINING ITS LOST STATEHOOD
1
POLAND 1918:
REGAINING ITS LOST STATEHOOD By Prof. Andrzej Chwalba The end of the First World War saw a resurgence in the creation of new nation states and the rebirth of Poland. Between 1918 and 1921 more than a dozen new states were created in Europe, constituting the new political architecture of the continent. Among them were those like Poland that regained their statehood that had been violently terminated at the end of 18th century. Others, like Latvia or Estonia, appeared on the map for the first time in history. Despite the reforming efforts undertaken at the end of 18th century, the Polish state fell. It didn’t stand a chance against the three strong imperial powers: Russia, Austria and Prussia. However, for the Poles, independence and freedom were always indivisible values. Throughout the whole of the 19th century the ’Polish question’ was always present, i.e. the question of putting Poland back on the map in one way or another. During the Napoleonic era the Duchy of Warsaw was established (1807-1815) and after it fell, the Kingdom of Poland (Congress Kingdom) was established. That lasted until 1832 and was formally a sovereign, constitutional and liberal entity, joined in personal union with the Romanov dynasty. Meanwhile, the autonomous Free City of Cracow functioned up until 1846. New military blocs in Europe Regaining independence was not possible as long as the alliance of the three occupying powers lasted. However, at the turn of 19th century two military blocs were established in Europe: the Central Powers and the Entente. The German Reich and Austro-Hungary were in the first bloc, Russia (allied with France and Britain) in the latter. For the first time in 100 years the powers that had partitioned Poland went different ways. Polish hopes were raised. Yet in 1914, the year when the Great War started, none of the occupying powers was willing to treat the Polish question as an international issue. It was only in 1916 that the political situation in Europe and in the world began to change in favour of Polish interests.Germany and its allies occupied large former Russian territories in the East inhabited by different nations. In Berlin it was decided to create a system of theoretically sovereign
2
The first Polish government after independence was regained. Józef Piłsudski, Provisional Head of State is in the middle and to his left, Jedrzej Moraczewski – the first Prime Minister
states which were in practice dependent on Germany both politically and economically. The idea of a recreation of the Polish state was further supported by Germany, convinced by the bravery of the Polish Legions fighting for the Central Powers since the beginning of the war of which Józef Piłsudski was the informal commander. A momentous act The first event of international importance for the rebirth of Poland was the so-called Act of 5th November 1916, signed by both emperors: Wilhelm II and Franz Joseph I. Among other things, the act promised the creation of a Polish state with Warsaw as its capital. Over the next few months Polish authorities were established along with the occupying regime – a government and a Regency Council. The year 1917 brought other positive developments. Firstly, in post-revolution Russia, the new republican authorities decreed that a Polish state could be recreated, but only in a free alliance with the new Russia. Then in April 1917, the United States of America joined the war on the Allied side. In his famous speech to the US Congress in January 1918, President Woodrow Wilson declared in the 13th out of 14 points that an independent Poland should be created with access to the sea. European allies soon followed the Americans in recognizing the Poles’ right to restore their own state. In
France, meanwhile, a Polish allied army was established, commanded by general Józef Haller, politically subordinate to the Polish National Committee led by Roman Dmowski. The Committee was subsequently recognised as the official representation of Poland to the Western powers. Who will rule? In 1918 the future of Poland seemed secure. The regaining of independence was certain, as was the defeat of the Central Powers. One more question needed to be answered: who would take over the government of the reborn Poland – Józef Piłsudski or Roman Dmowski?The fall of the Austro-Hungarian Empire and of Imperial Germany in the Autumn of 1918 made it possible for the Polish independence fighters to disarm the occupying forces peacefully. Józef Piłsudski finally won the political race for power. He returned to Warsaw on 10th November 1918 after having been detained in Magdeburg Fortress since July 1917. He was proclaimed Provisional Head of State.Together with the new government and the Polish people he created the Republic of Poland (Rzeczpospolita Polska); a republican, open, tolerant and democratic state. Citizens were guaranteed a wide spectrum of personal freedoms and women were given the same political rights as men in 1918.
Publisher: CPH POST • Editor: Hans Hermansen • Journalist: Stephen Gadd • Layout: CPH POST • Info: hans@cphpost.dk, Tel: +45 2420 2411
WELCOME
FROM THE POLISH AMBASSADOR
Dear CPH POST readers, it gives me great pleasure to present a special supplement to the Copenhagen Post dedicated to Poland and Polish-Danish co-operation. The year 2018 is a very special one for Poland, as my homeland celebrates the 100th anniversary of regaining independence (1918-2018). To mark this solemn occasion Polish diplomacy all over the world aims to shed more light on our history, the current economic and political developments – as well as culture and tourism, focusing on the best that Poland has to offer. In recent years Poland and Denmark have become close partners. Energy
infrastructure, in particular the Baltic Pipe project connecting Poland, Denmark and Norway, will bring our countries even closer together, serving the idea of a competitive and transparent energy market in the European Union. This supplement offers you an in-depth look at the new gas pipeline. We are delighted to see more than 800 Danish companies investing and operating in Poland. Three decades after the political changes, Poland has developed a strong brand in many sectors. We are proud to see Polish buses in many Danish cities or ships from Polish shipyards at the Danish coasts.
Poland is also a strong food producer. We are proud to provide organic and premium quality products – also to Denmark. Finally, Poland is an excellent tourist destination with magnificent mountains and lakes well worth visiting, many of which are unfortunately still largely unknown to Danes. Therefore, first and foremost I would like to invite you to visit Poland and meet your Polish neighbours! Henryka Mościcka-Dendys, Poland’s ambassador to Denmark
3
HAVING AN
ORCHESTRA CHANGES A CITY Celebrating Katowice, good music and upholding high artistic standards. Katowice is a new cultural centre in Poland. The fame of the city has spread throughout Europe as well, mainly due to the Polish National Radio Symphony Orchestra (NOSPR). This great ensemble has a long-established tradition, being over 80 years old. It dates back to the inter-war period, when it was established in Warsaw. After World War II and following the complete destruction of the capital of Poland, the orchestra resumed its activity in Katowice, the city where Polish Radio had a new, professional sound studio.“The orchestra has always been gathering a lot of music lovers who were able to appreciate it – and no wonder,” says Joanna Wnuk-Nazarowa, the current Managing and Programme Director of the NOSPR. “The orchestra gives brilliant performances covering the repertoire of various periods, and its artistry consists in perfectionism and innate Silesian musicality.” From 1 September, Ewa Bogusz Moore will take over the position of Managing and Programme Director. The NOSPR is also a member of the European Broadcasting Union (EBU). Its concerts are recorded and broadcast by Polish Radio and other European public broadcasters. The musicians work under the pressure of the microphone. They know that any potential shortcoming will go out on the air, and this is why they don’t make mistakes while playing.The world-famous Polish composers Henryk Mikołaj Górecki and Wojciech Kilar have emphasised how
4
much they like having their works premiered by the NOSPR. Kilar called the orchestra “a bank of national culture.” The proximity of this outstanding ensemble was one of the reasons why both composers resided in Katowice to the ends of their lives, although they received offers of co-operation from all over the world. Situated in an interesting building During recent years, the new seat of the orchestra has generated considerable interest in the ensemble itself. The building, designed by the architect Tomasz Konior, contains two concert halls, i.e. the main and the chamber one. The brick elevation follows the Silesian tradition of working-class housing estates and pays homage to the local area.The Artistic Director of the NOSPR, German conductor Alexander Liebreich, is delighted with this architectural solution. He has said that the building is deeply rooted in the heart of the industrial region of Silesia and that there lay the authenticity that people would confirm and appreciate.His predictions have certainly come true. Every concert performed in the NOSPR attracts almost two thousand music lovers, gathered in the main concert hall. The same holds for the concerts of foreign orchestras visiting Katowice. So far, they have included the Vienna Philharmonic Orchestra, the London Symphony Orchestra, the WDR Symphony Orchestra Cologne, the Bavarian Radio Symphony Orchestra, and the upcoming artistic season is featuring the Berlin Philharmonic Orchestra.
Perfect acoustics The leading world ensembles are attracted by the perfect acoustics of the hall, designed by Japanese specialists Yasuhisa Toyota from Nagata Acoustics Company. All the instruments are perfectly audible everywhere in the hall, including in the most distant seats. To obtain this effect, the Japanese constructed a model of the concert hall in a scale of 1:10 and used it for acoustic tests. Copenhagen boasts a concert hall built in the same manner. Today, the new seat of the NOSPR hosts concerts almost every day. They cover not only the great classical repertoire but also other styles of music, for instance jazz, popular music or hip-hop. Joanna Wnuk-Nazarowa emphasizes that the orchestra is open to experiments with diverse performers provided that they play good music and maintain high artistic standards. She has never given her consent to concerts of dubious quality. The musical experiments have brought the orchestra spectacular successes. When the NOSPR played with the rapper Miuosh, two thousand tickets sold out on the Internet in a few minutes and the concert had to be repeated several times. The concert was followed by the release of a DVD promoting the orchestra, its seat, and Katowice in an interesting way. In turn, the CD recording of that concert was awarded a gold record. Joanna Wnuk-Nazarowa adds that another benefit of such experimental projects is winning over new enthusiasts for the orchestra. Open to new ideas The NOSPR has been famous for its openness to unconventional ideas. The orchestra has twice set sail aboard the most popular Polish sailing ship Dar Młodzieży. On the first cruise, the musicians visited Latvia, Estonia and Finland. The second voyage marked the 200th anniversary of Fryderyk Chopin’s death. It was then that the ship carrying the orchestra came into the harbours of Denmark, Sweden, Norway, but also the UK and France. The musicians crossed the English Channel, following the route of Chopin’s last journey. The orchestra has also gone on another atypical tour, entitled Pociąg do muzyki Wojciecha Kilara. A special train ran from Lviv, the composer’s home town, to Katowice. The NOSPR performed music
by Kilar at railway stations, e.g. in Medyka and Cracow. These journeys constitute a sort of mission carried out by the orchestra while promoting Polish music abroad.Moreover, the ensemble takes part in major international festivals, such as the Ludwig van Beethoven Easter Festival, in which Elżbieta Penderecka, Krzysztof Penderecki’s wife and an organizer of cultural activities, engages the biggest names of the musical world. A UNESCO accolade Meanwhile, the world is discovering Katowice. In 2015, it was designated as a UNESCO Creative City of Music. It greatly influences the music life in Katowice. Great events that combine various styles of music are held in the concert halls, but also in the open air, including in the vicinity of the new seat of the NOSPR. The concerts gather tens of thousands of enthusiasts, the new generations of music lovers are educated during music workshops. All those places and events really impressed the organizers of WOMEX, the biggest music fair in the world. Following their visit to the NOSPR concert hall, the management board of the fair decided to organize their event in Katowice. The Szymanowski competition As early as 10 September 2018 the same venue will be full of performers’ emotion.
The first edition of the Karol Szymanowski International Music Competition will take place here. The Competition, intended to be held every five years, will be the launching pad for the most talented musicians. The competitors include pianists, violinists, string quartets, singers, and composers. The organizers are Polish Ministry of Culture and National Heritage, the NOSPR, Polish Radio, and the Academy of Music in Katowice, among others. Karol Szymanowski is considered the second-greatest Polish composer (after Chopin). His lifetime coincided with the critical and hopeful period of the Polish struggle for independence. This year, the Poles celebrate the 100th anniversary of regaining independence, so the dedication of the competition to Szymanowski may be regarded as symbolic.The musical rivalry will surely be successful in promoting his music in the world. The Polish National Radio Symphony Orchestra has aspirations towards making the Szymanowski Competition an event comparable with the Chopin Competition, which paved the way for numerous musicians’ great international careers. An exceptionally busy schedule This is an exceptionally busy time for the
orchestra. At the moment, the schedule of events for the upcoming artistic season is being arranged. It includes foreign journeys e.g. to Hamburg, Vienna, and Copenhagen. It is in the latter city that the NOSPR will play the two Peer Gynt suites by Edvard Grieg, the well-known Piano Concerto in E minor by Fryderyk Chopin, and the Concerto for Orchestra by Witold Lutosławski.The orchestra will be conducted by its Artistic Director, Alexander Liebreich, and the pianist will be Szymon Nehring, known to the European audience as the winner of the Arthur Rubinstein International Piano Master Competition in Tel Aviv. In this year marking the important anniversary of its independence, Poland brings its music to European cities. Ewa Niewiadomska, Manager of the Polish Radio Culture Department, Katowice Don’t miss your chance to listen to the Orchestra in Copenhagen on 9 September in DR Koncerthuset. The programme includes works by Chopin, Lutosławski and Grieg. Tickets still available on DR Koncerthuset website www.drkoncerhuset.dk . Concert organised in collaboration with Adam Mickiewicz Institute. Strategic partner of the event PGNiG S.A.
5
AN EXCITING NEW
CO-OPERATIVE GAS PROJECT Poland’s Government Plenipotentiary for Strategic Energy Infrastructure, Piotr Naimski, gives some background on a major project that will create a new gas supply corridor for the European market.
Q
In the Polish Government you are the person responsible for energy transmission infrastructure, including the Baltic Pipe project. Can you tell us what its main goals are? Piotr Naimski (PN): Baltic Pipe is a strategic infrastructure project with the goal of creating a new gas supply corridor for the European market. The pipeline will connect Polish and Danish gas transmission systems, thereby allowing for direct gas deliveries from the Norwegian Shelf to Poland. The investment is being jointly developed by the transmission system operators from Denmark, Energinet and from Poland, Gaz-System, with the co-operation of Gassco – the Norwegian gas infrastructure operator. With a capacity of 10 billion m3 of gas per year Baltic Pipe will provide 60 percent of the annual Polish gas demand. What’s more, there is a perspective for further gas transmissions to the Central and Eastern European countries. To this end, Poland is constructing gas interconnectors with Lithuania, Slovakia, Ukraine and Czech Republic.
Q
Why did Poland decided to invest in gas in connection with the Norwegian Continental Shelf? PN: Poland depends on gas imports. Cur6
rently, 70 percent of our domestic demand is covered by external sources. Around 90 percent of the imports are based on a long term contract with the Russian Gazprom company, which expires in 2022. Unfortunately, Poland has experienced the malpractices of the Russian supplier, who has interrupted gas deliveries to our country for political reasons many times. Moreover, Gazprom is using its monopolistic position to impose non-market gas prices on Polish consumers – higher than those offered in Western Europe. This was recently confirmed by the European Commission in an anti-monopoly case against Gazprom as well as in the partial ruling of the Stockholm Arbitration Institute in a dispute between the Polish gas supplier PGNiG and Gazprom. So Poland is determined to implement a strategy to diversify sources of gas supplies to allow for imports from other sources.
Q Q
How is this investment perceived in Poland? Is there a danger that the next government might give up on the project? PN: The Baltic Pipe project enjoys a high level of support from all political parties as well as Polish public opinion – according to the opinion polls 90 percent are in favour. We know what the benefits of this project are for Poland, but how can Denmark benefit from this pipeline? PN: The Danish operator Energinet prepared a document, available on their website, outlining clear advantages of the Baltic Pipe project for Denmark. The main findings of that document include the financial bene-
fits, i.e. a decrease in the gas bills paid by the Danish consumers, resulting from a significant reduction in the transmission tariff as volumes of gas transmitted through Danish system will rise. The estimated net income from this decrease will be between 1.9 and 2.9 billion DKK. Secondly, the pipeline will improve Danish energy security by creating a new route for the gas supply. Without this pipeline, after stopping the use of its own gas sources, Denmark would become fully dependent on gas supplies via Germany, which could be dangerous if there was a pipeline failure. The consequences of such a failure were fully demonstrated last year in Italy, where a state of emergency was introduced after an explosion in a pipeline in Baumgarten near Vienna. This led to supply shortages for Italian consumers. Thirdly, as result of the decrease in tariffs the cost of biogas transmission will also decrease, which will in turn increase the competitiveness of this fuel in Denmark.
Q
Where is the project right now? PN: We are in the preparatory phase. Since September 2017 the Danish company Rambøll has been conducting environment, geophysical and geotechnical studies commissioned by Gaz-System to minimise the environmental impact of the pipe and guarantee the highest security standards. In June this year Gaz-System accepted Rambøll’s recommendation for the preferred pipeline route across the Baltic Sea. The selected route is 275 km long. It starts in Faxe South on the Danish coast and leads to the Polish coast in Niechorze. Now that
the route has been selected, it is possible to start the design work. Construction should take around two years. Our goal is to make the pipeline fully operational by October 2022. At the same time the Open Season procedure completed in January 2018 resulted in signing long term contracts (15 years) for the gas transmission from Denmark to Poland, which guarantees the profitability of the project.
Q
Denmark plans to stop the use of fossil fuels, which includes natural gas. Instead of following this lead, Poland is constructing a pipeline that will transmit 10 billion m3 of gas. Why? PN: Both countries are at a different starting point. Currently, 90 percent of energy in Poland is based on coal. Natural gas is lower in emissions, especially when it comes to sulphur and nitrogen compounds, as well as dust which is particularly harmful to health. The construction of Baltic Pipe will make it possible to build gas power plants, which is impossible right now due to the risk of shortages in fuel supply. Gas power plants are perfectly suited to co-operate with renewable sources of energy, hence acting as back-up when there is not enough wind or sun. So, which might seem paradoxical, the construction of the Baltic Pipe will actually contribute to the increase of renewables in the Polish energy mix.
Q
Is this project supported by the European Union? PN: Yes, significantly. The Baltic Pipe is listed as Project of Common Interest (PCI) by the European Union, so it enjoys strong support from the European Commission. The pipeline will not only benefit both Poland and Denmark but also significantly contribute to market integration and increase competition. Moreover, it will enhance the security of supplies and limit CO2 emissions. PCI projects can receive financial support within the framework of Connecting Europe Facility financial instrument of the EU. The Baltic Pipe project received this support three times – 0.4 million Euros in 2015 for preparatory work, 33 million Euros in 2017 and 18 million Euros in 2018 for design work.
Q
What do you think of the co-operation between the investors, Polish Gaz-System and Danish Energinet? PN: Both companies have been co-operating for several years now. In June last year they signed a Framework Agreement which settles their co-operation in the initial phase of the project. At present, negotiations are underway on the Construction Agreement. We are hoping for a swift conclusion. Afterwards, investors will be in a position to take their final investment decisions, which should be the case by the end of November this year. Regarding our co-operation with
the Danish partner, I see a positive will to co-operate on both sides.
Q
Is the co-operation between governments going as well as between the companies? PN: Baltic Pipe is obviously constantly on the inter-governmental agenda. The most visible effect of this co-operation is the memorandum on the project signed in June 2017 by the Prime Ministers of Poland and Denmark. In that declaration both governments confirmed that they would take all the necessary steps to support Energinet and Gaz-System in their efforts to implement the project. This resolution is being put into practice almost on a daily basis. Piotr Naimski is a Polish politician and academic teacher. He holds a PhD in natural science. During the Communist regime Naimski was an opposition activist and publicist. He has been a member of the Polish Parliament since 2011. Naimski has also held a number of posts – Deputy Minister of Economy from 2005-2007, Secretary of State in the Prime Minister’s Chancellery and since 2015, he has been Government Plenipotentiary for Strategic Energy Infrastructure responsible for energy resources diversification policy. For further information, please refer to: https://www.baltic-pipe.eu/dk/
7
BALTIC PIPE –
A PROJECT OF REGIONAL SIGNIFICANCE By Tomasz Stępień, CEO of GAZ-SYSTEM The Baltic Pipe will make a positive contribution to the entire region as well as to Central and Eastern European countries. The Baltic Pipe project is sometimes considered an infrastructure investment being undertaken solely due to security of supply considerations in Poland that will only benefit the Polish market. Given the size of the natural gas market in Poland it is true that security of supply remains one of the primary drivers, though it is obviously not the only one. The importance of the Baltic Pipe project goes far beyond this need and it will certainly contribute positively to countries in the Baltic Sea region and to those in Central-Eastern Europe (CEE). A number of examples could be provided to support the above thesis, but I will use just a few of the most important ones. Enhancing competition First of all, it is the regional gas market that needs to be developed. The gas markets in the Baltic and CEE region remain highly concentrated due to the lack of real competition and limited access to diversified supply sources. In this context the Baltic Pipe project will transport significant volumes of Norwegian gas to the Baltic and CEE regions.
This is the best confirmation that the Baltic Pipe significantly fulfils the EU policy objectives by enhancing market integration, fostering competition and ensuring security and diversification of gas supplies. A sustainable approach Secondly, it is sustainable. The EU Member States share the same climate and energy objectives in the long run, despite different starting points in their paths towards energy transition. I would like to emphasise that high-emission sources of energy (e.g. solid fuels or petroleum) represent a large share of the national energy mix in the the Baltic Pipe project area. In some countries, including Poland, these sources far exceed 50 percent of the energy mix. Similar conditions hold true for example in the power generation and heating sectors. The implementation of long-term climate and energy objectives may be led through the promotion of natural gas and its infrastructure. This policy will contribute significantly towards substantial long-term emissions reductions.
Access to a completely new source of supply for the regions historically dependent on a dominant supplier will enhance competition between gas suppliers and thus increase downward pressure on gas prices. Furthermore, the project, together with currently implemented gas interconnections between Poland and Lithuania, Slovakia, the Czech Republic and Ukraine, will create a much-needed basis for a well-integrated and functioning gas market for the benefit of gas consumers. This regional dimension was highly appreciated by the European Commission, which granted ’Project of Common Interest’ status to the Baltic Pipe project, as well as to other infrastructure investments developed by GAZ-SYSTEM. 8
Tomasz Stępień, CEO of GAZ-SYSTEM
In this context the Baltic Pipe project is expected to provide incremental volumes of natural gas as a low emission fuel to the power, heating sectors and other industries. Furthermore, the project will help accommodate the increasing uptake of renewable energy sources. As a result, this will foster energy transition in an efficient, affordable and sustainable manner. An efficient source of energy Natural gas is an efficient source of energy that can be used not only to meet policy objectives but also to mitigate specific and tangible problems faced by citizens. Air pollution resulting from burning high emission and low-quality fuels, especially in the winter period, constitutes a serious problem in many communities and adversely affects our health. It is a particular concern for Central-Eastern Europe. Therefore we need to take remedial action swiftly.
Natural gas can help achieve this in a timely and cost-efficient manner with the connection of new customers such as households, heat and power plants to the gas grid and the promotion of alternative fuels such as LNG and CNG in the transport sector. We are implementing the Baltic Pipe project in close co-operation with Energinet, our fellow project promoter. To this end, it is of crucial importance to build a strong partnership underpinned by trust, shared choices and common objectives. As far as the objectives are concerned we see that the project is having a positive influence on the Danish economy. Furthermore, through the intermediary of joint undertakings with the Danish operator, we will put the missing links in place to create an integrated, competitive gas market in the Baltic Sea region bringing benefits to consumers.
9
DENMARK AND POLAND
BOOSTING DIVERSIFICATION OF GAS SUPPLIES Why Nord Stream 2 is a reason for concern to Denmark and Poland and what both countries can do jointly to secure the competitive gas market for the whole of Europe. The CEO of Polish Oil and Gas Company (PGNiG), Piotr Woźniak, spoke to CPH POST about some current developments, co-operation with Denmark and the future plans of the company.
Q
Denmark opposes the construction of the Nord Stream 2 pipeline, being aware of the consequences it may have for the EU and Ukraine. Poland has voiced opposition to this controversial project too. What are your main arguments against it? The main argument against Nord Stream 2 is the threat to the energy security of Europe. If Nord Stream 2 is built, Gazprom will gain absolute dominance of the natural gas sector in Central and Eastern Europe. Countries such as Poland, Slovakia and the Baltic States will become surrounded by gas infrastructure fully controlled by Gazprom. This is even more worrying, because Gazprom has proved to be an unreliable partner to us, halting and disrupting gas deliveries to Poland several times since we joined the EU. It has been enforcing its monopolistic practices without facing any consequences from the European Commission. Having diversified their gas supplies, Western European countries are in a much different and much better position. Poland and the Baltic States still suffer the consequences of the Soviet domination of the past and are dependent on gas supplies
10
from Russia. We are consistently working to lower this dependence by importing more liquefied natural gas (LNG), investing in domestic gas production and developing our presence on the North Sea.
Q
Can Nord Stream 2 be stopped? The awareness of the economic and political threats posed by Nord Stream 2 is increasing. Danes were the first to recognise the risk and acted accordingly by introducing adequate legal regulations. Last year the Danish parliament Folketinget passed a law that halted construction of the pipelines in Danish territorial waters for security reasons. Your Prime Minister has underscored the political consequences that the controversial pipeline could bring for Ukraine and Eastern Europe and called upon the EU to take action. The European Commission has also started to perceive Nord Stream 2 as not just a “business project”. The EU Energy and Climate Commissioner Miguel Arias Cañete clearly stated that construction of the Nord Stream 2 pipeline is not in the EU’s interest if it only adheres to Russian legislation and simultaneously violates European laws. Dominique Ristori, Director-General for Energy in the European Commission, underlined the point that the construction of Nord Stream 2 does not fit many of the objectives of the European Union. The EU believes that “Nord Stream 2 will not
contribute to diversifying of sources and routes of gas supplies to Europe,” he said. The EC has undertaken steps to apply EU regulations to Nord Stream 2 which would mitigate some – but not yet all – of the risks associated with this controversial project. Unfortunately, the legislative process is dragging on and the final outcome is uncertain. The clock is ticking though and Gazprom deals with legal constraints very well. Last month the company announced that it had applied for an alternative route for Nord Stream 2 that cannot be blocked by the Danish Government. The next possible way to stop Nord Stream 2 could be a US decision to introduce sanctions against companies involved in the construction of the disputed gas pipeline. This would significantly increase the cost of the project or even effectively block its financing. We should all try to co-operate towards diversification of gas sources for the entire European continent. That is precisely why PGNiG is pursuing its strategy of diversification. We are responsible for the energy security of Polish companies and households and we cannot allow ourselves to neglect the risk that Gazprom poses to Central and Eastern Europe.
Q
So what has PGNiG already done to make it happen? While in 2015 the percentage share of Polish imports from Russia was 87 percent, in 2017 it had dropped to 70 percent. To cover the difference and satisfy booming demand for natural gas on the Polish market, PGNiG has been extracting from domestic gas fields and increasing imports of LNG from countries such as Qatar, Norway and the USA. The Polish gas transmission system operator Gaz-System is expanding the capacity of the LNG terminal in Świnoujście from 5 to 7.5 billion m³ per annum. Its utilisation rate currently stands at 60 percent, which is the highest among all large LNG import terminals in Europe. Polish and Danish companies are investing in Baltic Pipe – a pipeline which will connect Norway’s and PGNiG’s natural gas sources in the North Sea with Denmark and Poland. By 2022 we want to produce at least 2.5 billion m3 a year of our own gas on the Norwe-
gian shelf. Other options in the North Sea are pending. We have also been investing in our domestic production. Taking advantage of the latest research techniques and survey technologies has allowed us to expand our base of hydrocarbons for production. We strongly support both projects – the Baltic Pipe and the expansion of Poland’s LNG terminal, because they provide for the diversification of gas supplies and energy security – not only for Poland but for the entire CEE region. Together they create a new gas supply corridor in the European market.
Q
From the Danish perspective Baltic Pipe is the most interesting project. How is Denmark involved? We hope that the Baltic Pipe project developed by Poland’s Gaz-System and Denmark’s Energinet will further strengthen our relations. The open season procedure for Baltic Pipe proved the project to be economically viable. Energinet has already committed to build its part of the Baltic
Pipe. The route has been chosen. According to the schedule, in 2022 the pipeline will start delivering natural gas from the North Sea to Poland. And Denmark will benefit from transit fees. The pipeline will be filled with PGNiG’s natural gas produced out of Norwegian fields and additional volumes of gas purchased from the North Sea. The whole CEE region, including Ukraine, will benefit from our co-operation. It is a business project that has obtained EU approval and aims at strengthening energy security in Europe.
Q
But the activities of PGNiG extend beyond Poland and Norway ... Yes, you are correct. We have been active in Norway for over ten years, but operations are also being carried out in Pakistan where we produce tight-gas which supplies local market. In February last year we opened our LNG trading branch in London. Four months later, the first LNG cargo from the US was delivered to Poland.
11
In addition Polish and Danish firms co-operating on the Baltic Pipe project, companies from our countries have a history of working together. One of PGNiG subsidiaries, now called Geofizyka Toruń and well-known for its geophysical services, had been conducting seismic research for Ørsted, formerly DONG Energy. Our specialists in geophysics have established market recognition through their work worldwide – from Columbia to India.
Q
Speaking about LNG. It is a buzzword we hear everywhere. How does PGNiG want to participate in this increasingly competitive market? We are consistently strengthening our position in the global LNG market. As mentioned before, PGNiG has opened a trading office in London. Currently, almost 20 percent of our gas imports this year so far have been covered by LNG. We recently signed agreements with two US companies that develop liquefaction and LNG export facilities in Louisiana and Texas. The agreements set conditions for two 20-year contracts on the sale and purchase of a total of four million tons of LNG a year which after regasification, stands for around 5,5 billion m³ of natural gas a year. Such a volume will not only allow PGNiG to cover a significant part of Poland’s demand, but will also let us actively trade LNG on a
12
global scale. Both contracts to sign are FOB. For PGNiG it is a very important step towards the development of trading operations on the global LNG market.
Q
What can Poland and Denmark do together to foster a diversified gas market so all European Union countries could benefit from competitive and secure supplies? Domestic production of natural gas in Denmark and Poland is comparable (4.7 vs 4 billion m³ a year). However, Poland’s gas production covers about 25 percent of national demand, while Denmark is a net exporter. So you can rely on your own resources, whereas Poland has to import most of natural gas it consumes. This is why we have to buy it only from reliable suppliers. Apart from issues of energy security and the need for diversification, the discussion in Denmark and Poland on business relations with Gazprom also has its ethical side. We all know that natural gas is a political tool for Russia. Poland and its neighbours have experienced it several times. What Poland has been trying to achieve is breaking free from such dependence. And what we can do together is to co-operate with a goal of diversifying natural gas sources and routes for the continent and not become more and more dependent on deliveries from a single supplier. This is what
Polish and Danish companies are trying to achieve with the Baltic Pipe project – allowing more Scandinavian gas to come to the CEE and creating a new gas route to the continent. I am sure it will be beneficial for many countries in the region, for the market competitiveness and for the energy security in Europe. A Polish gas champion Polish Oil and Gas Company (PGNiG SA) deals with the exploration and production of natural gas and crude oil and – through key companies from the Capital Group – with the import, storage, sales, and distribution of gaseous and liquid fuels, production of heat and electricity as well as geophysical and drilling services. Its subsidiaries and branches carry out exploration and production activities in Norway and Pakistan, gas sales in Western Europe and LNG trading through an office in London. It is the fifth largest in terms of market capitalisation on the Warsaw Stock Exchange with a 2017 revenue amounting to almost 36 billion PLN (62.3 billion DKK) and 2017 net profit of 2.5 billion PLN (4.3 billion DKK). It has almost seven million individual and corporate clients – which is more than population of Denmark.
Danish people. Polish heritage. Global presence.
Technology for Business. Solutions for People. Asseco Denmark is part of the global Asseco Group led by Asseco Poland. Our Danish and Polish branches are closely connected and dedicated to creating IT solutions that bring together the best from both countries. Our Advisory IT Engineers and IT Craftsmen are some of the most talented IT consultants – all standing by to create efficient IT implementations with measurable impact for both businesses and people. Maybe we can help you too?
asseco.dk
13
Asseco Annonce 212x288 DK-PO.indd 1
29/08/2018 14.11
WARSAW:
AN EVENTFUL SUMMER
Beach viewing terraces on Warsaw’s Vistula Boulevards. Photo: City of Warsaw
Riverside vistas and historic culture – the city has it all. Warsaw is a vibrant, remarkable, and ever-changing city. Summertime is a particularly thrilling time to hit the capital of Poland, as life moves outdoors. Visitors and residents alike are invited to attend world-class open-air cultural events and spend their leisure time along the rejuvenated Vistula Boulevards. Cosy beach viewing terraces, pavilions running cultural events and serving food, river harbours – as well as a number of other attractions – make the Vistula Boulevards a friendly space for everyone wishing to escape the city’s hustle and bustle. The revamped tract on the left bank of the Vistula river extends from the Gdański Brid14
ge to the Świętokrzyski Bridge. The ubiquitous lindens, barberries and basket willows create the uniquely green scenery, while a number of facilities makes the boulevards handy for both families with children and persons with disabilities. You can cover the entire length of the boulevards on a bicycle – classic or electric. One of the stations is situated near the Copernicus Science Centre – a stateof-the-art research lab. On your way, stop for a coffee or a snack in one of the brand new pavilions. One of the them - The Polish Pavilion - serves traditional local food at reasonable prices. Nearby, take a closer look at the four multi-functional floating pavilions – they are stops for water-powered trams, traditional and motor boats cruising the river.
Museums, concerts and sport Culture vultures must not skip a visit to the Museum on the Vistula, which runs free-ofcharge exhibitions. The local amphitheatre, on the other hand, hosts intimate concerts and performances. Invariably popular are the weekend laser shows at the Multimedia Fountain Park taking place in the evenings. Finally, in September, Warsaw eyes the beloved Feast of the Vistula River with sports tournaments and spectacular river races. The action takes place in other parts of the city, as well. For years, Warsaw has been renowned for the prestigious summer events: the Chopin concerts in the bosom of nature, summer jazz Saturdays at the Old Town, and the celebration of the Jewish culture in the vicinity of Grzybowski Square. From mid-May to the end of September,
A Chopin concert in Warsaw’s Łazienki Park. Photo: A. Osytek
every Sunday at 12:00 and 16:00, the Royal Łazienki Park resounds with mazurkas and nocturnes of one of the most famous composers and pianists of all time – Fryderyk Chopin. The Chopin Concerts, now in their 59th season, give listener a rare chance to listen to some of the greatest performers of classical music – all for free.
Billund with LOT, the Polish Airline. Billund is LOT’s fifth Scandinavian destination. The Warsaw-Billund route will operate Mondays to Fridays twice a day, ensuring great travel flexibility. On Saturdays there will be one morning flight only and on Sundays one afternoon flight.
Jazz and Jewish culture Warsaw has some great jazz traditions, too. For almost a quarter of a century, the scene at the Old Town Square, next to the iconic Mermaid’s statue, has been accommodating jazz legends from all over the world. Each year, the excellent International Open-Air Festival Jazz at the Old Town held each Saturday at 19:00 attracts at least one million listeners. Finally, at the end of the summer season, Warsaw pays tribute Jewish culture – both traditional and modern. A concert by the cantors Yaakov and Shul Lemmer from the United States in the Nożyk Synagogue will inaugurate the 15th edition of Singer’s Warsaw, while the versatile violinist from Spain – Ara Malikiana will perform at the finale at Grzybowski Square. A perfect complement to the Festival is a visit to Warsaw’s POLIN Museum, which presents a 1000-year history of the Jews in Poland. In 2016, the Museum was awarded the title ’European Museum of the Year’. For more events in Warsaw, visit warsawtour.pl/en/ what-where-when/ Fly direct to Warsaw from Billund! From July 2 you can fly direct to Warsaw from
than 2 hours) at LOT’s Warsaw Chopin Airport.The new route is aimed both at business passengers and those travelling for pleasure. The Warsaw-Billund route is part of LOT’s 2016-2020 growth strategy. LOT intends to become the first-choice airline not only among passengers travelling from Poland but also from other CEE countries. LOT forecasts that its annual passenger traffic will have reached over 10 m passengers by 2020 meaning that the number of its passengers will have doubled in four years. In Scandinavia LOT offers now direct flights between Copenhagen-Warsaw (3 times a day), Gothenburg-Warsaw (once a day), Oslo-Warsaw (twice a day) and Stockholm-Warsaw (3 times a day).
The flight, lasting about 1 hour and 40 minutes, will be operated by Embraer 170s and 175s with a capacity of 70 - 82 seats in three classes: business, economy premium and economy. The timetable allows LOT to offer the most attractive connections between Billund and various destinations of the Central and Eastern Europe, Balkans, Central Asia, the Far East and North America. It also permits passengers from many cities in the Central and Eastern Europe and Asia to travel to Billund with a convenient transfer (usually in less
All long-haul flights in LOT’s network are operated by Boeing 787-8 and 787-9 Dreamliners, each offering seats in three classes: business, premium economy and economy.“The B787 is currently the most technologically advanced wide-body passenger aircraft in the world. Its composite structure and state-of-the-art engines reduce fuel consumption and offer higher levels of comfort compared to other planes,” says Adrian Kubicki from LOT. In 2017 LOT’s passenger traffic totalled over 6.8 million people, an increases of nearly 25% year-to-year. Text: WarsawTour & LOT Polish Airlines
15
THE BEST WAY TO POLAND BUSINESS AND PLEASURE
SERVICE IN ENGLISH, POLISH AND DANISH MORE THAN 20 YEARS OF EXPERIENCE WITH POLAND
We can manage your transport portfolio between Denmark and Poland - we offer more than 10 departures to Swinoujscie daily - so if you’re staff or goods should get the easiest and most flexible way to Poland - please contact us and lets meet
Experience Poland! we offer group travel, incentives, private tours maybe next stop should be Warsaw, Krakow, Gdansk or the Polish nature?
Phone: +45 44 45 12 80 16
www.PolenGO.dk • mail: book@PolenGO.dk