ORLEN boosts LPG import capacity with major investment

ORLEN Paliwa has doubled storage capacities and increased annual LPG handling by 65% in Szczecin, now reaching 400,000 tonnes following an investment exceeding PLN 150 million ($36.5mn).

Share:

ORLEN Paliwa, a subsidiary of the ORLEN Group specialised in wholesale fuel distribution, has completed a significant investment to expand liquefied petroleum gas (LPG) import and storage capacity at the maritime terminal in Szczecin, north-western Poland. The works have doubled storage capacity and increased annual handling to 400,000 tonnes, representing about a 65% increase compared to the initial situation. This project, valued at more than 150 million Polish zloty (PLN), approximately $36.5mn, aims to further secure LPG supplies for ORLEN’s petrol stations across Poland. The entire project was executed by a consortium composed exclusively of Polish companies.

Development of rail infrastructure

In response to rising demand for maritime imports, ORLEN has expanded the site’s rail infrastructure, adding three new tracks, a modern railcar unloading station with integrated weighing equipment, and a brand-new LPG pumping station. This logistical enhancement now facilitates imports, given that 35% of LPG entering Poland currently arrives via maritime routes. Rail remains, however, the primary domestic transportation mode. The project, launched in 2022, took two years to complete, with AGAT S.A. as the lead contractor.

The centrepiece of this expansion is the installation of two new LPG storage tanks, each 75 metres in length, manufactured by the Gdynia Shipyard. Each tank has an individual capacity of 2,100 cubic metres and weighs approximately 400 tonnes. The terminal now has a total storage capacity of 8,700 cubic metres, significantly boosting its competitiveness in the LPG import sector in Poland.

Diversified supply and increased autonomy

Since 2022, ORLEN Paliwa has ceased importing LPG from Russia, refocusing on supplies from its own refineries located in Poland and Lithuania. The remainder comes from markets in Western and Northern Europe. Currently, ORLEN Paliwa holds around 30% of the Polish domestic LPG market, with an extensive network of specialised terminals located across seven national sites: Hrubieszów, Krosno Odrzańskie, Nowa Brzeźnica, Płock (Chemików and Długa sites), Sokółka, and Szczecin.

Most LPG distributed in Poland is used in the transport sector as autogas, representing nearly 75% of total consumption in 2024. The remainder serves heating requirements in municipal, industrial, and agricultural sectors. The increased import capacity at the Szczecin terminal enables ORLEN to better respond to the growing national demand, particularly for propane intended for heating and autogas production.

According to Marek Balawejder, Member of the Management Board responsible for Retail Sales at ORLEN, the expansion “significantly enhances supply security for ORLEN petrol stations and improves overall efficiency in the group’s Consumers & Products segment.”

Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.
Naftogaz announces the launch of a natural gas well with a daily output of 383,000 cubic meters, amid a sharp decline in Ukrainian production following several military strikes on its strategic facilities.
Sonatrach and ENI have signed a $1.35 billion production-sharing agreement aiming to extract 415 million barrels of hydrocarbons in Algeria's Berkine basin, strengthening energy ties between Algiers and Rome.
Maple Creek Energy is soliciting proposals for its advanced 1,300 MW gas project in MISO Zone 6, targeting long-term contracts and strategic co-location partnerships with accelerated connection to the regional power grid.
VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.
The extreme heatwave in China has led to a dramatic rise in electricity consumption, while Asia records a significant drop in liquefied natural gas imports amid a tight global energy context.
E.ON, together with MM Neuss, commissions Europe’s first fully automated cogeneration plant, capable of achieving a 91 % fuel-use rate and cutting CO₂ emissions by 22 000 t a year.
Facing the lowest temperatures recorded in 30 years, the Argentine government announces reductions in natural gas supply to industries to meet the exceptional rise in residential energy demand across the country.
Solar power generation increased sharply in the United States in June, significantly reducing natural gas consumption in the power sector, despite relatively stable overall electricity demand.
Golden Pass LNG, jointly owned by Exxon Mobil and QatarEnergy, has asked US authorities for permission to re-export liquefied natural gas starting October 1, anticipating the imminent launch of its operations in Texas.
Delfin Midstream reserves gas turbine manufacturing capacity with Siemens Energy and initiates an early works programme with Samsung Heavy Industries, ahead of its anticipated final investment decision in the autumn.
Norwegian group DNO ASA signs gas offtake contract with ENGIE and secures USD 500 million financing from a major US bank to guarantee future revenues from its Norwegian gas production.
Golar LNG Limited has completed a private placement of $575mn in convertible bonds due in 2030, using part of the proceeds to repurchase and cancel 2.5 million of its own common shares, thus reducing its share capital.
Shell Canada Energy announces shipment of the first liquefied natural gas cargo from its LNG Canada complex, located in Kitimat, British Columbia, primarily targeting fast-growing Asian economic and energy markets.
The Australian government is considering the establishment of an east coast gas reservation as part of a sweeping review of market rules to ensure supply, with risks of shortages signalled by 2028.
The increase in oil drilling, deepwater exploration, and chemical advances are expected to raise the global drilling fluids market to $10.7bn by 2032, according to Meticulous Research.