Energy Report
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Energy Report January 2016 Coal Polish Stream Coal Market Index PLN 215.78 ARA Coal (USD/TONNE) USD 47.7 (PLN/TONNE) -PLN 3.18 -USD 5.7 since October 70.6 since November 230.93 215.78 2015 47.7 2015 Nov 2014 Nov 2015 Dec 2014 Dec 2015 Oil Brent Crude Oil (usd/barrel) USD 39.1 Urals Crude Oil (usd/barrel) USD 35.9 -USD 6.8 -USD 5.2 64.0 since November 60.1 since November 39.1 2015 35.9 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Gas Gas prices on Polish PLN 71.36 Gas prices on the Gaspool EUR 16.2 Power Exchange (PLN/MWH) exchange market (EUR/MWH) -PLN 7.47 -EUR 1.4 22.6 116.21 since November since November 71.36 2015 16.2 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Fuels PB95 petrol (pln/litre) PLN 4.27 ON petrol (pln/litre) PLN 4.18 -PLN 0.13 -PLN 0.15 since November 5.04 since November 4.74 4.40 2015 4.18 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Electricity Electricity prices on Polish Electrical energy trading volume PLN 138.98 2451 GWh Power Exchange (PLN/MWH) on Polish Power Exchange (GWh) -PLN 14.79 +264 GWh since November since November 172.29 138.98 2015 2 164 2 451 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015 Green certificates on Polish PLN 115.6 Sources: Power Exchange (PLN) Polish Power Exchange [Towarowa Giełda Energii] -PLN 4.09 monthly indexes: BASE; GAS_BASE; OZEX_A; 155.98 since November www.polskirynekwegla.pl 115.6 (PSCMI 1 Index); Datastream (average monthly 2015 prices for ARA coal, oil, fuels and gas Dec 2014 Dec 2015 on Gaspool exchange market). The month PROGRESS OF KEY INVESTMENTS: Opole power plant (PGE): On December 30, the proces of laying concret in energy foundations has been completed in the turbomachinery at the block no.6. PGE has informed that the advancement of the construction of two energy blocks has reached 30 per cent. The first block is set to become operational in July 2018, while the second one – in 2019. Jaworzno power plant (Tauron): On December 29 the proces of laying foundations for the boiler-house and machine-room of the new coal block Włocławek with a total power of 910 MW. The investment is to be ready in 2019. Power and heating plant Włocławek (PKN Orlen): On January 4 a new energy block, with the total power of 463 MW, has been opened. It is Turów Opole the subsequent stage of the opening of the first gas-powered power and heating plant, which is set to conclude in half-2016. LNG terminal (Polskie LNG): On January 7 the testing phase is to begin on gas transmissions between the LNG terminal in Świnoujście and the national transmission system. The installation is expected to become available for commercial exploitation before June 2016. 15.12 UOKiK launches probe on creation of Nord Stream II. 17.12 Electricity prices to fall. The Energy Regulation Office 2015 The regulator received the inquiry concerning the esta- 2015 (URE) accepted all the energy tariffs for 2016. The blishment of a joint venture company by, among others, joint bills of end recipients in households which buy the Russian Gazprom, the German EON, the French EN- electricity from the so-called office sellers (PGE, GIE and the Dutch-British Shell. The company is to build Tauron, Energa, Enea), will decrease by an average of the third and fourth segment of the Nord Stream pipeline. 1.6 per cent – an equal decrease is expected for energy Apart from UOKiK, which is not going to give its consent distribution charges. URE explained that lowering the in the shortened, monthly procedure, the transaction will tariffs was possible, among others, due to lower costs be subject of examination also by a German watchdog. In of green energy purchases. Thanks to its decision, an theory, UOKiK could even block the creation of the new average household will save up to PLN 12-22 in 2016 on venture. All the entities need to be granted its consent, as its energy bills. the new company is expected to reach an annual turnover of PLN 10 million in Poland. 22.12 Nowa Kompania Węglowa will definitely be formed 2015 by mid-2016. The earliest possible date is the end of 16.12 Jasiński became CEO of PKN Orlen. The company’s March – informed MinEner. Before it can be set up, 2015 supervisory board first dismissed chief executive Jacek detailed financial analysis and talks with employees Krawiec and then appointed Wojciech Jasiński as the new are needed. CEO. Earlier, the former MinTrea in 2006-2007 and one of the closest collaborators of Jarosław Kaczyński reno- 28.12 PGNiG to return to North Sea pipeline. PGNiG’s acting unced his mandate of MP. He will be replaced in the Sejm 2015 CEO Piotr Woźniak stated that the construction of Baltic by Waldemar Olejniczak, a Sierpc poviat councillor, while Pipe between Poland and the North Sea would be very the post of the head of public finance committee will go good for the company. It would enable gas extracted by to Andrzej Jaworski. PGNiG from the Norwegian shelf to be imported more cheaply and develop this segment of the company’s 17.12 PiS puts forward draft amendment to law on RES. It puts activity. Woźniak also said that PGNiG will develop 2015 off the introduction of the auction system by half a year. a long-term strategy of takeovers in the extraction seg- If the amendment is adopted, RES infrastructure launched ment. For now though, the company will not apply for by June 30, 2016 will be able to use the current system new licences as oil and gas prices are too low. of green certificates. However, this could cause a conflict between Poland and EurCom. According to our sources, 28.12 President signs act on mining. The eight laws signed Brussels is to accept a system for supporting RES based 2015 by President Andrzej Duda include an amendment on green certificates at the start of 2016, but assuming to the law on coal mining, which extends for transfer- that it will expire on January 1, 2016. Extending its functio- ring mining companies’ redundant assets to the Mine ning could prompt the Commission to change its mind Restructuring Company to December 31, 2018. This and force the public aid to be returned. will enable mines to be closed down gradually. Polityka Insight – Energy Report January 2016 2 29.12 Henryk Baranowski is the most likely candidate to beco- 06.01 Three new deputy energy ministers. Michał Kurtyka will 2015 me CEO of PGE – informed Puls Biznesu. He is currently 2016 be responsible for the ministry’s contacts with the EU deputy MinTrea for energy and will move to PGE when on energy matters. Andrzej Piotrowski will deal with the energy competences are transferred from MinTrea to the energy market, nuclear and renewables. He will eventu- newly-created MinEner. This means that the handover ally take over supervision of Poland’s energy companies, could be postponed slightly and that Marek Woszczyk PGE, Tauron, Enea and Energa, from MinTrea. At MinEner may keep his job until mid-2016. Wojciech Kowalczyk, deputy MinTrea until now, will help secretary of state Grzegorz Tobiszowski restructure 30.12 New CEOs at Energa and Enea. The supervisory board Poland’s mining industry. 2015 of Energa chose Dariusz Kaśków as CEO. Acting CEO Roman Pionkowski became deputy CEO for development 07.01 MinTrea drops competitions for company CEOs. MinTrea strategy. Kaśków was deputy CEO of KGHM for a few 2016 Dawid Jackiewicz announced that there will be no compe- months in 2007; earlier, he served as mayor of the town titions for CEOs of companies with a special significance of Głupczyce. There were also changes to Enea’s mana- for state security. In particular, this will apply to energy gement: Mirosław Kowalik, former director of sales and companies and those in the financial sector. MinTrea will marketing in the Polish branch of Alstom Power, became personally appoint the CEOs. According to Jackiewicz, CEO. Acting CEO Wiesław Piosik became deputy CEO this will enable the minister to take full responsibility for for corporate affairs. the functioning of these companies and guarantee that they pursue the state’s strategic interests. 31.12 Government replaces CEOs of Gaz-System and PSE. 2015 Tomasz Stępień became Gaz-System’s new CEO, repla- 08.01 Will Saudi Aramco become a listed company? „Saudi cing Jan Chadam, who stepped down on December 31, 2016 Arabia is considering listing shares in state-owned at the same time retaining his job as CEO of Polski LNG, Saudi Aramco, the largest oil producer,” informed Finan- the operator of the LNG terminal in Świnoujście. The cial Times. This stems from the country’s deteriorating same day CEO of Polskie Sieci Elektroenergetyczne (PSE) financial situation, which has been hit by low oil prices. Henryk Majchrzak was also dismissed and replaced by The FT emphasises that the company’s value is estimated Eryk Kłossowski. Piotr Naimski, the government’s pleni- to be USD 1 trillion. For comparison Apple, based in Cali- potentiary for energy infrastructure since December 21, fornia, is worth USD 543 billion. A decision on Aramco’s is responsible for the reshuffles at energy transmission possible stock exchange debut is to be made within companies. several months. 04.01 Tchórzewski on coal mines and energy dividend. 11.01 Fortum preparing to take over Duon.