The analysis of “Krynica declaration” of the biggest Polish companies over 2nd Industry Forum in Karpacz

Over 2nd Industry Forum in Karpacz (8-10 December 2016) key challenges of Polish and European industry will be discussed. The issues that were raised during 26th Economic Forum in Krynica (6-8 September 2016) will be talked over.

More and more of the Polish companies representing the energy and chemical industry and mining pay attention to the company’s development, announces changes in business and announces undertaking of large projects. The declaration given by the Presidents of the largest Polish companies at the Economic Forum in Krynica this year prove it.

The President of PERN SA Igor Wasilewski declared over 26th Economic Forum the need of completion of the third line of the Friendship Pipeline (running from Adamov on the border with Belarus to Plock) and built for 13 years. The investment needs to get monetized.  In addition, PERN is planning to expand transmission capacity by 20 percent and enlargement of Gdansk Naftoport so that could remake 40 million tons of raw material (today it remakes 11 million tons), as well as the construction of new warehouses.

The big change regarding the sources of crude oil supply to the refinery in Gdansk, was announced by Marcin Jastrzebski, the Vice President of LOTOS SA Group. The company has had so far the fixed contracts exclusively with the Russian suppliers. Currently the Iranian raw material delivered to the Polish August are being examined. If the Iranian raw materials delivered to Poland in August this year will be of acceptable technological and economic parameters  If the processing of light crude from Iran will be beneficial in technological and economy terms for the Gdansk refinery, LOTOS will sign the agreement with the Iranian supplier,” the National Iranian Oil Company, “- Marcin Jastrzebski said in Krynica.

Laboratory analysis of dozens of species of crude oil are being made by PKN Orlen. This is done in the search for other than Russian sources of supplies of “black gold”. Miroslaw Kochalski – the Vice President of the company referred to the analysis over the Forum. Orlen and LOTOS diversify oil supplies buying it from Saudi Arabia and Iran. They pursue not only business goals, but also the objectives of the state – said Michal Kurtyka, Deputy Minister for Energy over the Economic Forum in Krynica.

In turn, the President of PGNiG, Piotr Wozniak announced the plans of a five-fold increase in production of gas in Norway by 2021. According to Piotr Wozniak, in the hitherto relations with Russia’s Gazprom, with which the company is involved by a long-term gas supply contract “it is hard to find positives.” He recalled that several times the Russian monopoly “for no reason” interrupted supply, which – as he pointed out – is to be changed.

Over 26th Economic Forum changes in Polish legislation introduced by the government and aimed at combating, among others, the gray zone were also discussed. According to the entrepreneurs and experts, these changes have resulted in positive trends in the fuel market.

The President of LOTOS Group SA Robert Pietryszyn said at the Economic Forum in Krynica, that the positive results of fuel package introduction are already visible. He referred to the amendment of several laws, including the VAT and excise duty, energy law and the law on fuel stocks, effective since 1 August). According to Robert Pietryszyn in August the wholesale trade increased by almost 20 percent. “This is a drastic jump. If the trend continues, it means that the Act did its best to the the benefit of the customers who buy a better fuel, and for the State Treasury”- he said.

Much more attention during the session of Krynica Forum was devoted to issues pertaining to Poland  entering the fourth industrial revolution. The Industrial Revolution also affects the energy sector – said in Krynica Piotr Zawistowski, the Vice President of Trading and Client Service in TAURON Poland Energia SA. “We are talking about the use of smart grids and the Internet of things “- said Piotr Zawistowski.

The word “development” was undoubtedly one of the most repeated slogans of 26th Economic Forum. The future development was also announced at Krynica meeting by the largest state-controlled energy company in Poland- Polish Energy Group PGE SA. They informed that after 2020 the decision with regard the construction of the new power sources will be made. Depending on the market situation (energy prices and climate policy), PGE plans to build a nuclear power plant or a wind farm. Moreover, the President of PGE Henryk Baranowski presented the company’s business strategy update for 2020, according to which the company plans to invest 34 billion over the next four years.

The companies that want to be competitive on the international market need to invest in research and development. “Continuous improvement is a compulsion to remain on the market and to develop,” – said Mariusz Bober, the President of Azoty Group. The company he manages invests, among others, in building Research and Development Center in Tarnów. The total value of the project amounts to nearly 88 million of polish zloty. Krzysztof Skóra – the President of KGHM Polish Copper SA  also informed about assigning the major funds to research and development. It is due to the fact that copper ores are getting mined from deeper deposits, which increases the threat and badly affects working conditions. Robotics seem to be the way to reduce these risks. Moreover, the President of KGHM Polish Copper SA Krzysztof Skóra predicted over the Economic Forum a strong rebound in copper prices.