ORLEN Group reports record-high natural gas production from own reserves in 2024
In 2024, the ORLEN Group’s natural gas production across its operations in Poland and abroad reached 8.6 billion cubic meters, marking a 20% growth year on year. The Group’s revised strategy targets an increase in gas production volumes to 12 billion cubic meters by 2030, with plans to sustain this level through 2035.
“Upstream operations are a key pillar of the ORLEN Group’s long-term growth strategy through 2035. They contribute significantly to Poland’s energy security by providing a bridge fuel for a responsible energy transition. Over recent years, natural gas output from our domestic and foreign assets has covered nearly half of Poland’s annual demand. The substantial increase in production from our own reserves in 2024 marks a major milestone in achieving our strategic goals for the coming years. Our strategy aims to further increase production by 40% from the current record-breaking level. To achieve this, we are prioritising investments in Poland and Norway, while also exploring opportunities in the North American hydrocarbon market, which could give us access to significant resources while enabling efficient LNG deliveries to Poland,” says Wiesław Prugar, Member of the ORLEN Management Board for Upstream.
The primary driver behind this significant increase in gas output was ORLEN Upstream Norway’s operations on the Norwegian Continental Shelf, which delivered 4.5 billion cubic meters of gas in 2024, up 45% year on year. Meanwhile, production from the Polish fields remained stable at approximately 3.3 billion cubic meters, similar to 2023 levels. Output from the Group’s Canadian and Pakistani operations also remained steady, each contributing 0.4 billion cubic meters in 2024.
A key strategic focus remains on gas production in Poland, which is targeted to reach 4 billion cubic meters annually by 2030 in accordance with ORLEN’s strategy. To achieve this, the Group is consolidating and optimising its previously fragmented domestic upstream assets within a single company, ORLEN Upstream Polska, to enhance operational efficiency and resource management. The ORLEN Group currently holds 223 hydrocarbon exploration and production licenses in Poland.
The Norwegian Continental Shelf remains a cornerstone of the Group’s strategy for growing gas production. ORLEN Upstream Norway holds 100 licenses in the region and is currently producing gas from 20 fields. By 2030, annual output from Norway is expected to rise to some 6 billion cubic meters. The operations on the Norwegian Continental Shelf play a critical role in securing gas supplies for Poland via the Baltic Pipe.
In recent years, domestic gas production has accounted for approximately 20% of Poland’s natural gas demand, which attests to its role in ensuring national energy security. The discovery and extraction of gas from domestic reserves not only enhance supply security but also benefit local municipalities in the areas where the production sites are located. This is because hydrocarbon producers pay production royalties, whose amount depends on their output. The production royalty is divided between municipalities (60%), counties and provinces (15% each) where the fields are located, and the National Fund for Environmental Protection and Water Management (10%). In 2024, the ORLEN Group’s contribution to local government’s budgets included over PLN 110.5 million in production royalties and PLN 89.5 million in property taxes related to hydrocarbon infrastructure. Furthermore, PLN 18.8 million in production royalties was transferred to the National Fund for Environmental Protection and Water Management in connection with ORLEN Petrobaltic’s offshore production activities in Polish Baltic Shelf.
The ORLEN Group conducts exploration and production operations across four continents. In Europe, it operates in Poland, Norway, Lithuania, and Ukraine; in North America, it has assets in Canada; in Asia, it is active in Pakistan and the United Arab Emirates; and in Africa, it holds operations in Libya. As at the end of 2024, the Group had proven hydrocarbon reserves totalling 1,306.9 million boe, comprising 73% natural gas and 27% crude oil and NGL. These reserves are distributed as follows: 710 million boe in Poland, 407.8 million boe in Norway, 147.7 million boe in Canada, 40.5 million boe in Pakistan, and 1 million boe in Lithuania.
