LPG distributor SHV Energy's Polish subsidiary Gaspol took the decision to halt purchases of Russian LPG early this year in response to the invasion of Ukraine. The company has more recently said it will give access to its 1.2mn t/yr Gdansk terminal — the largest seaborne terminal in the country — to other importers to help in the event of an embargo on Russian LPG. Argus' Waldemar Jaszczyk spoke with Gaspol chief executive Ewa Gawrys-Osinska about some of Poland's supply concerns.
How did the decision to halt Russian LPG purchases impact the firm?
It was a great challenge for all of our products, especially for LPG cylinders, which are overwhelmingly a propane-butane mix. The co-ordination of all teams involved in gas sales and supply played a key role. We acted quickly and decisively.
Have you faced difficulties diversifying supply and expanding Gdansk's capacity?
For years, Gaspol has been pursuing a diversification policy regarding supply routes, making the phasing out of deliveries from the east much easier. Obviously, significant changes always carry business risks. For us, this was reduced by our membership in the SHV group, which has many terminals across Europe [that we can use].
Is selling non-Russian LPG important for Gaspol's customers in Poland?
Our research shows that the vast majority of clients reacted positively to our boycott of Russian LPG. It is our way of saying no to the senseless aggression on Ukraine.
How is LPG transported from Gdansk to the inland demand centres?
We use railcars and trucks. The Gdansk port plays a significant role in transporting energy, primarily coal, and we have to consider it in our logistical planning.
Will the logistical bottleneck at Gdansk prevent Gaspol from increasing LPG imports to 100,000 t/month as planned?
Ports took the main burden of supplying LPG. Any substantial increase in the terminal's capacity would require treating LPG transportation on a par with coal, and we have appealed to the government for such a move. LPG provides energy security to Polish consumers and companies in the same way coal does.
Do you expect Poland to introduce an embargo on Russian LPG from 1 January?
Media reports suggest works on the embargo are progressing, but we need to know the scope. Only after the government [announces its plan] will the industry be able to assess the potential impact. Our position remains unchanged. Eliminating supplies from Russia will increase Poland's long-term energy security, and the companies should start preparing for this today. On the other hand, we do see the need to implement a co-ordinated policy for saving energy, which will be of invaluable importance for the whole economy, of which the LPG sector is a part.
How much of Gdansk's capacity will be made available to other importers?
There is no simple answer to this question. Increasing the terminal's capacity alone is not enough, as there is plenty to do on the rail transport side. We will wait until the embargo project is released, and then we can engage in effective discussions with interested parties.
How would this affect Gaspol's import programme?
This is not a thing that can begin overnight. It requires reorganising the terminal's operation, hiring additional personnel and investing in the infrastructure. For sure, it will have a significant impact on our activities.
How much LPG do you expect to import through Gdansk this year?
It will be a record year for Gdansk. At the end of October, we twice broke our daily record throughput. We cannot disclose exact numbers yet, but I can confirm we are ready to absorb much more than we did in previous years. The bottleneck is [the railway network] — this is something that needs to be taken into consideration and improved by the railway authorities.
Why did you decide to let other importers use your terminal?
The terminal has potential that can be shared in a certain circumstance on a commercial basis. We already co-operate with third parties, which can use our storage and transloading capacity. Today, the major thing that restrains us is railway capacity — coal transport has priority and our product has to wait. That substantially limits the unloading and loading capacity of our terminal.
How many more railcars and trucks have you acquired or rented since the decision to boycott Russian LPG?
This is not information that we share publicly. But what is important to emphasise is that for a couple of years in a row, we have been expanding our rail transport capacity. Since March, we had to expand it even more to transport gas from Gdansk to our other storage places. The same goes for trucks. This year, the availability of trucks and drivers is very difficult — we face serious shortages in Poland. It is particularly difficult in the peak winter and grain drying seasons.
How hard is it to secure new railcars on the Polish market nowadays?
Frankly speaking, very hard. The railway transport market has changed in the past several months from supply to demand-driven. Not so long ago, companies leasing railcars were knocking at gas suppliers' doors. Now it is the opposite. So we have to be open to more flexible, new ways of co-operation with them.
