The Polish Petroleum and Natural Gas Market - Instytut Nafty i Gazu

The Report of the Oil and Gas Institute in Krakow 

and Natural Gas Market 

2011 

2011 № 6 The Polish Petroleum 

Honourable Patronage: 

Minister Gospodarki RP 

The main Sponsor: 

Content consultation:

Contents: 

Introduction by Minister of Economy ..........................................................................................................................................................5 

The Economy of Oil and Gas ...................................................................................................7 

Is supervision of the state authorities necessary in respect to oil and gas? ................................................................. 8 

Is there a reason to fear about the future of gas fuel supplies and prices in Poland? ........................................16 

OIL: exploration, extraction, sales ......................................................................................23 

How a dwarf became a giant… .................................................................................................................................................................24 

Social revolutions in Africa: can another worldwide oil crisis be expected?.............................................................40 

Drilling...............................................................................................................................................................................................................................46 

GAS: exploration, distribution, sales ............................................................................... 53 

There is a chance for increased security in the energy sectorin Poland ....................................................................... 54 

An unconventional approach to unconventional resources ...............................................................................................60 

Greenhouse gas versus the Earth ................................................................................................................................................................66 

Will gas hubs become ‘trendy’ in Poland too? ..................................................................................................................................74 

LPG under close scrutiny ....................................................................................................................................................................................80 

The new challenge for gas deposit prospecting .............................................................................................................................90 

Oil and Gas Exploration Company Cracow Ltd. aims at shale gas.................................................................................96 

On-line monitoring .............................................................................................................................................................................................100 

Contribution of the BSiPG GAZOPROJEKT (Gas Engineering Projects) in increased security in the Polish gas sector ....106 

”Multi”, meaning ”many modern solutions” ......................................................................................................................................114 

Ecology in the oil and gas industry ................................................................................. 121 

Promotion of Healthier Energy ..................................................................................................................................................................122 

Bio-components in fuel and engine oil ................................................................................................................................................128 

Bio-cleaning: employment off er for microorganisms .............................................................................................................136 

Oil and natural gas – unconventional future .................................................................................................................................142 

E d i t o r : 

The Polish Petroleum and Natural Gas Market 

ISSN 1896-4702 

Publisher: 

Oil and Gas Institute 

31-503 Kraków, ul. Lubicz 25 A 

Tel.: +48(12) 421 00 33 

Fax: +48(12) 430 38 85 

email: offi ce@inig.pl 

www.inig.pl 

REGON: 000023136 

NIP: 675-000-12-77 

KRS: 0000075478 

Editor’s Offi ce: 

Oil and Gas Institute 

31-503 Kraków, ul. Lubicz 25 A 

Tel.: +48(12) 421 00 33, 

Fax: +48(12) 430 38 85 

email: nafta-gaz@inig.pl 

www.inig.pl 

Marketing and promotion: 

Wojciech Łyko 

e-mail: Wojciech.Lyko@inig.pl 

Layout, DTP: 

Paweł Noszkiewicz 

e-mail: pawel.n@webkreator.com.pl 

Editors: 

Agnieszka J. Kozak 

Wojciech Łyko 

Editorial Collaboration: 

Tomasz Barańczyk 

Sławomir Huss 

Grzegorz Kuś 

Jacek Ciborski 

Michał Krasodomski 

Maria Woźny 

Piotr Kasza 

Jerzy Rachwalski 

Iweta Gdala 

Mateusz Konieczny 

Beata Altkorn 

Irena Matyasik 

Anna Jarosz 

Regina Katlabi 

Anna Huszał 

Grzegorz Łapa 

Mariusz Caliński 

Joanna Zaleska-Bartosz 

Zbigniew Stępień 

Stanisław Oleksiak 

Wiesława Urzędowska 

Joanna Brzeszcz 

Piotr Kapusta 

Anna Turkiewicz 

Translation into English: 

Renata Woźniak 

Jarosław Sygnat 

Elżbieta Woźniak 

Tomasz Żuk 

Illustrations: 

The photos and drawings inserted in this publication 

are printed after the news bulletins: 

sxc.hu, www.mgip.gov.pl, and company 

archives of: Grupa Lotos S.A.”, Instytut Nafty 

i Gazu, PNiG Sp. z o.o. 

The remaining illustrations have been 

prepared by text authors. 

Printing: 

Drukarnia i Agencja Wydawnicza „ARGI” 

Wrocław, ul. Żegiestowska 11 

Edition: 

1200 copies

WICEPREZES RADY MINISTRÓW 

MINISTER GOSPODARKI 

Waldemar Pawlak 

Dear sir / madam, 

I have the honor to recommend you another annual 

report of the Oil and Gas Institute in Krakow – 

The Polish Petroleum and Natural Gas Market 2011. 

This publication discusses extensively the most 

interesting issues in the oil and gas sector, which 

provides a perfect supplement and systemization of 

knowledge in these areas. The Polish Petroleum and 

Natural Gas Market 2011 presents the most newsworthy 

topics which substantially determine the shape 

of energy markets – consequences of the recent 

start-up of the Nord Stream pipeline or the impact of 

events in North Africa and Middle East on the prices 

and supplies of crude oil in the world. The publication 

also contains detailed information and analyses concerning 

shale gas, LPG, new technologies and environmental 

issues. 

Today, the sector of energy is fundamental for the 

economy and it constitutes a basis for operation of 

all industrial branches. We have got accustomed to 

the fact that oil, fuels and natural gas are an object of 

daily information in the media with respect to prices, 

supplies, disrupted deliveries and new investments. 

Poland treats this branch with great respect. We are 

trying to create friendly, legislative framework for entrepreneurs 

in the oil an gas sector, we closely watch 

the events on the EU forum and we intervene always 

when we acknowledge that the proposed solutions 

do not serve the development of the Polish energy 

sector. 

Poland is leading the EU works in the nearest six 

months – we will devote that time for really intensive 

efforts in the scope of energy issues: we reveal external 

aspect of the EU energy policy, we promote energy 

solidarity and we are trying to approach the climatic 

aspect of operation in energy sectors in Europe 

within acceptable limits. 

Poland faces great challenges with respect to energy 

– it suffices to mention the development of the 

Waldemar Pawlak – Vice Prime Minister, 

Minister of Economy 

shale gas sector, nuclear energy or investment in electrical 

energy, gas industry and mining. These are most 

advanced activities, Poland carefully considers each 

of the energy sectors, trying to ensure competitiveness 

and innovations in economy. 

Energy security has a great value in making efforts 

to support the country’s interests, which guarantees 

stability of supplies of the energy carriers, simultaneously 

taking care of the development of deposits in 

the country and providing alternative routes of supplies. 

Poland is secure in terms of energy, although 

it is not free from impact of events in the world markets, 

which could be observed particularly in the recent 

months with relation to oil and fuel prices. 

I heartily encourage you to read this publication. 

The Polish Petroleum and Natural Gas Market 2011 is 

intended not only for those deeply engaged in energy 

issues, but also for all those who wish to extend 

their knowledge in this field or acquaint themselves 

with the latest analyses, trends and events in the petroleum 

and gas market. 

The Polish PeTroleum and naTural Gas markeT 2011

The 

Economy 

of Oil and Gas

8 

There are several groups of tools which help the 

authorities to infl uence the strategic sectors of 

economy. Their spectrum is diversifi ed: starting with 

the tax tools, through proprietary supervision over key 

entities of the energy chain of assets, to fi nally supporting 

the investment projects. Due to regulations in 

the European Union, in case of its member states, the 

possibility of regulating the market by tax tools is limited, 

therefore other tools are useful, especially those 

promoting development and ecology which quickly 

gain in meaning. 

Analyzing the question of the presence (interference) 

of the state in its strategic sectors, it is not possible 

to disregard the most severe aspects for drivers: 

the excise duty and other instruments under control 

of the fi scal authorities. Among the taxation tools of 

reacting on the oil and gas market and consequently 

on the price level of these goods, the following have to 

be listed: excise duty on fuels, fuel charge (opłata paliwowa) 

and the VAT rate. Larger range of fi scal instruments 

with direct impact concerns the oil market. At 

the same time, due to the necessity to protect the natural 

environment, the state should also shape its fi scal 

policy concerning the oil and gas market, taking this 

The Polish PeTroleum and naTural Gas markeT 2011 

The Economy of Oil and Gas 

Polish Government in Strategic Sectors 

Is supervision of the state 

authorities necessary in respect 

to oil and gas? 

TOMASZ BARAŃCZYK, SŁAWOMIR HUSS, GRZEGORZ KUŚ 

While analyzing the role of the state in petroleum and natural gas 

sectors it is obvious that shrinking reserves of fuel and ever growing 

demand for all kinds of fuels put the state authorities in undoubtedly 

diffi cult situation since they have to balance between 

satisfying the demands of their citizens, competitiveness of the 

economy, protection of the environment and budget revenues. 

aspect into consideration. The infl uence on oil and natural 

gas market can be accomplished by implementing 

some defi nite restrictions and tax relieves both for 

the consumers and enterprises in these sectors. 

Modeling by the excise 

duty, VAT and fuel charge 

The sale of liquid fuel is subject to excise duty, 

which presently amounts to 1565 PLN / 1000 l in respect 

of unleaded gasoline and 1048 PLN / 1000 l in 

case of diesel oils. The excise duty rates are determined 

on the basis of the Excise Duty Act, therefore, their possible 

durable change would require legislative process, 

which is usually extended in time. However, in some 

situations taking into consideration the condition of 

the state economy the Minister of Finance can temporarily 

(no longer than for three months and in at least 

three months` intervals) lower the excise duty rates for 

particular products. Nevertheless, it seems that such 

solution can only bring about a short term eff ect.


Taking into consideration legislative 

changes which came in force in Poland 

at the beginning of 2011 (among other 

things, increasing the VAT rate from 22% 

to 23%, lifting the bio-fuel excise duty 

and corporate income tax reliefs) in the 

near future we can rather expect another 

increase in the fi scal burden in the 

VAT and excise duty than any relief. It 

seems that also changes in the act concerning 

the VAT make the rate of this tax 

dependable on the relation of the state 

debt to the GNP confi rm such belief. 

Limitations in changing the excise duty rates in 

Poland for fuels are imposed by the European Union 

law – according to the directives, the excise duty 

amount may not be lower than 359 Euro per 1000 l for 

unleaded gasoline and 302 Euro / 1000 l for diesel oil 

(330 Euro / 1000l since 1 January 2012 after the end 

of the transitional period for Poland). Currently, the excise 

duty rates for fuels are then slightly higher than 

the Union minimum. According to the data of Eurostat, 

the excise duty on fuels in Poland fi ts the average Union 

margins. 

An additional fi scal burden in case of sales of fuels 

in Poland is 23% of rate of VAT. With respect to the VAT 

the Polish authorities are limited in their actions. According 

to the European Union regulations, the standard 

VAT rate (which is generally used for the sale of fuels) 

in the area of the member states may not be lower 

than 15% (e.g. such rate is in force in Cyprus). 

In Poland the price of fuel sales is also connected 

with the fuel charge (in 2011 it amounts to 

95.15 PLN / 1000 l of gasoline and 239.84 PLN per 

1000 l of diesel oil). The Polish authorities have signifi - 

cant freedom in shaping this burden as in general it is 

not regulated by the EU. The revenues from the fuel 

charge are to supply the fund for roads and highways 

construction. 

The Polish Government can supervise the oil market, 

infl uencing the prices for liquid fuel by increasing/decreasing 

the excise duty and VAT rates as well as those 

of fuel charge. It has to be mentioned, though, that 

in respect of the excise duty and VAT the possibilities 

and supervision of the oil market are limited (to tell the 

truth, in respect of the minimal level only, as there are 

no maximal level regulations) by the Union law. Taking 

into consideration legislative changes which came in 

force in Poland at the beginning of 2011 (among other 

things, increasing the VAT rate from 22% to 23%, lifting 

the bio-fuel excise duty and corporate income tax 

reliefs) in the near future we can rather expect another 

increase in the fi scal burden in the VAT and excise 


9

10 

duty than any relief. It seems that also changes in the 

act concerning the VAT make the rate of this tax dependable 

on the relation of the state debt to the GNP 

confirm such belief. Meanwhile, in respect to the fuel 

charge the authorities have more possibilities of acting, 

nevertheless the influence of this charge on the final 

fuel price for consumers is marginal. 

In respect to natural gas, apart from the VAT rate 

(till 31 October 2013 the excise duty relief is in force 

for the natural gas used for heating purposes), the potential 

indirect influence on the market of this fuel may 

be brought about by fiscal actions increasing or decreasing 

the costs, which are considered in calculating 

the tariffs concerning the natural gas (e.g. changes of 

depreciation rates for the oil and gas pipelines, changes 

of the real estate taxes or changes in personal income 

tax rates). However, the application of such instruments 

may have an unpredictable influence on 

other market segments. Until the gas market in Poland 



has been liberalized (which according to the European 

Union regulations should be done), the possibilities of 

influencing it with the aid of fiscal instruments seem 

much limited. 

Between demand, supply 

and budget revenues 

While using fiscal instruments of oil and natural gas 

markets’ supervision it is necessary to consider both 

micro-economic (e.g. consumer fuel prices, profitability 

of enterprises in the sectors) and macro-economic 

benefits (tax revenue to the state budget). Balancing 

of the benefits should by analyzed thoroughly prior to 

application of any fiscal instruments in relation to the 

sectors of strategic fuels.


However the range of tools in the government 

hands exceeds substantially the taxation system. It may 

also cover instruments of supporting and stimulating 

the development projects as well as desirable behavior 

of the consumers, related to pro-ecological attitude. 

Logistics of distribution is a crucial element of the 

fuel market in each country. It hardly ever occurs that 

an average driver pumps fuel to his or her car thinking 

of how this fuel reached this gasoline station. He or she 

frequently forgets that the logistics is crucial and determines 

two key market parameters – energy security 

and the cost factors. 

Logistics system in Poland operates well enough, 

so it is diffi cult to point out situations when fuel did 

not reach a selected area or base, what could result in 

shortage of petrol or diesel oil for consumers. The last 

signifi cant case happened in December 2007 at the 

bottom of the Vistula river near Włocławek city. There 

was a 40 ton fuel leakage from a damaged pipeline belonging 

to the PERN “Przyjaźń” company. The oil spot 

appeared on the river between Włocławek and Ciechocinek 

(Kuyavian-Pomeranian Voivodeship), spread 

to the whole width of river at the length of about 

30 km. Pipeline was out of order at the Płock (Mazovian 

Voivodeship) – Nowa Wieś Wielka (Kuyavian-Pomeranian 

Voivodeship) section. However the results of accident 

did not aff ect petrol stations. 

Investments 

Relative reliability of the logistics system in Poland 

does not mean its full eff ectiveness. Fuel storage facilities, 

pipelines, underground storage systems and other 

elements of the supply chain in our country require 

investments. It applies to ageing infrastructure, reconstruction 

investments and development requirements 

stemming from growing fuel consumption in Poland. 

It appears that state Involvement in the oil sector 

should be targeted at supporting the projects of expansion 

and modernization of Polish logistics and at enabling 

the greatest possible number of entities to enter 

the logistics system. Investments in logistics, especially 

the large scale ones, are expensive. Potential projects 

may infl uence both the energy security of Poland and 

the eff ectiveness of the logistics system. It seems that 

the role of the state in their execution is undisputable. 

Moreover, the investments may paradoxically cause increase 

of oil prices as costs of higher depreciation will 

be covered in the end by the consumers. 

In such a case the state in this area has an important 

role to play when large investments are considered. 

On the horizon arises a complex of underground 

storage for hydrocarbons. Lotos and PERN “Przyjaźń” 

signed a letter of intent on mutual construction of 

underground stores of oil and liquid fuels. Construction 

of caverns has been discussed for many years as 

it concerns the energy sector security: diversifi cation 

of oil supplies and the necessity of reaching storage 

capacity in caverns per citizen as e.g. in Germany or 

in France. PERN “Przyjaźń” also executes other investments. 

Recently it commissioned two new oil tanks in 

the reserve storage in Adamów. Construction of additional 

200 thousand cubic meters of storage capacity 

cost the logistics company about 100 million PLN. 

The reserve storage in Adamów is one of the three oil 

reservoirs belonging to PERN. Similar investments are 

planned by the company in two remaining reservoirs 

– near Płock and in Gdańsk. In case of Płock, it is necessary 

to dismantle three smaller tanks fi rst in order to 

create two in their place with capacity of 100 thou- 

While using fi scal instruments of 

oil and natural gas markets’ supervision 

it is necessary to consider 

both micro-economic (e.g. consumer 

fuel prices, profi tability of 

enterprises in the sectors) and 

macro-economic benefi ts (tax 

revenue to the state budget). 

Balancing of the benefi ts should 

by analyzed thoroughly prior to 

application of any fi scal instruments 

in relation to the sectors of 

strategic fuels 

sand cubic meters in total. In Gdańsk PERN is in search 

for land for constructing of two new tanks. One of the 

most important projects executed within the framework 

of the PERN strategy will be construction of the 

Storage and Handling Base of oil and fuels in Gdańsk. 

The new Base will off er also accumulating and reloading 

of fuels, raw materials and chemicals. The value of 

investment is estimated at about 800 million PLN. 

Opening of the Polish oil pipeline system of for third 

parties (TPA) is another project, discussed for many years. 

Due to historical reasons, the system of transferring fuel 

products begins in the Płock refi nery area, which automatically 

limits the number of entities that could use 


11

12 

it to just one. There is no defi nite answer what infl uence 

on the market and fuel prices would have the fact 

of entering the pipeline to Lotos or other companies. I 

It is obvious that the greater access to the infrastructure 

for all players, the larger competition appears and 

it is always to the benefi t of end consumers. Probably 

it would force two Polish fuel producers to swap – i.e. 

exchanging products in order to avoid transporting to 

the regions, in which the competitor`s products have 

stronger position. Thanks to limiting logistics costs customers 

could count on a certain price cut. 

Another interesting project opening the market to 

the new fuel suppliers is the construction of a pipeline 

on the Polish-Belarus border between the Biernady 

and Małaszewicze bases. The project goal is to de-bottleneck 

fuel import from Belarus. The possible import 

Governments of many countries encourage 

the purchase of vehicles featuring low exhaust 

gas emission, offering their buyers a 

number of subsidies and relief. Such solutions 

are e.g. in Austria, Belgium, Denmark, 

France, Ireland, Spain, Holland, Germany, 

Portugal, Romania, Sweden, United Kingdom, 

Italy and the United States. For example, 

in the United States, depending on the 

model of the vehicle, up to 7.5 thousand. U.S. 

dollar tax credit can be given when buying a 

car with an electric motor. In Poland those 

willing to buy ecologic vehicles still cannot 

count on special deductions or relief. 

to Poland via this route might reach from few hundred 

thousand even to million ton of diesel oil per annum. 

At this moment the railroad logistics is not able to service 

the entire demand for imported fuel. In addition, 

the necessity of exchanging bogies in railway tankers 

increases the import cost. In 2009, Operator Logistyczny 

Paliw Płynnych company presented the idea 

of constructing such a pipeline, but at that time this 

concept was effi ciently blocked. There are other market 

players interested in this project. TanQuid company 

confi rms its interest in constructing a fuel base in 

Małaszewicze, which would be supplied with diesel oil 

from Belarus refi neries. 



In case of the Polish gas market, involvement of 

the state concentrates on liberalization and development 

of storage infrastructure. It is expected that 

growing pressure of the European Union on liberalization 

will bring effects. Otherwise, there is a serious 

threat of financial penalties for Poland. Opening of 

the market does not mean at once lower prices for 

the end customers. However, in the long run, it will 

certainly allow shaping terms of gas purchasing by 

the market. It is especially important, as larger and 

larger world players are interested in entering Poland, 

which will certainly increase competitiveness in the 

fuel market. At present, the domestic transmission infrastructure 

is not ready for free gas trading. Existing 

interconnections between Poland and the European 

Union states are not sufficient to purchase additional 

gas volumes from abroad. At present only one interconnector 

operates on the German border near Lasow 

and its transmission capacity is too low (about 

1.5 billion cubic meters per annum). The enterprise 

Gas Transmission Operator Gaz-System executes also 

an interconnection project with the RWE Transgas 

Net system near Cieszyn. It will provide transmission 

capacity of 0.5 billion cubic metres of gas annually. 

Further local connections are also being analyzed. 

Meanwhile, the present projects of expanding storage 

capacity are targeted to expand the infrastructure 

capacity in Poland from 1.6 to 3.8 billion cubic 

metres.


Biofuels to care for natural 

environment 

Growing pressure to limit gas emission of to the 

atmosphere, especially stipulations of the Energy- 

Climate Package, became the next element affecting 

the costs of fuels, especially in respect of engine 

fuels. Thanks to adoption in 2003 the Directive 

2003/30/EC on the promotion of the use of bio-fuels 

or other renewable fuels for transport” From European 

Union promotes the use of biofuels. This directive 

recommended that consumption of biofuels 

in transport in the European Union states should 

reach 5.75% (calculated on the basis of energy content) 

by the year 2010. European Union agreed to 

implement the legally binding obligation within 

the National Indicative Targets (NIT) use of biofuels 

or other renewable fuels in transport at the level of 

10% in 2020 (calculated on the basis of energy content), 

which, as forecast assumption for that date indicates, 

should amount to about 43 million ton of 

fuels consumption. 

Having on mind environmental aspects and influence 

of the state on the fuel market, it seems that 

the role of government concentrates on two goals. 

On the one hand, the government has direct influence 

on the size and cost of execution of the National 

Indicative Target. On the other hand, in the long 

term perspective, it can promote ecological transport, 

electric vehicles for example. 

The cost of accomplishment of the National 

Indicative Target is significant and it is finally incurred 

by drivers. Ministry of Economy may lower 

fuel prices by revising the obligatory bio-component 

level in fuels. At the moment the NIT is above 

6%. Last year it was 5.75%. This indicator could be 

lowered legally, which could cut the fuel price. According 

to the data provided by the Polish Organization 

of Oil Industry and Trade in 2010 oil companies 

had to bear the cost of even 400 million 

PLN for execution of the NIT. The cost is then transferred 

into fuel prices at petrol stations. On the 

other hand, one should not overestimate the influence 

of this change on fuel prices. Lowering the 

NIT would not influence drastically the price level 

at petrol stations. It is also a short term solution, as 

Poland has to execute the requirements of the Directive 

which imposes obligation of 10% contribution 

of biofuels in transport by the year 2020. Another 

significant factor is the fact of allowing into 

the market fuels with higher level of bio-components 

than now, especially the bio-diesel B7 with 

7% content of methylene esters and E10, the petrol 

with 10% bio-ethanol additive. This solution would 

allow the oil companies to reduce the costs of execution 

of the NIT and could be translated into drop 

in fuel prices. 


13

14 


The Economy of Oil and Gas


Taxes and relief 

From the tax perspective the objective of environment 

protection can be executed in two ways. 

On the one hand, there can be restrictions (e.g. higher 

tax rate for particular industrial branches) and on 

the other hand – the system of tax reliefs for implementing 

of pro-environmental solutions. 

Taxation restrictions for oil and natural gas sectors 

applied in the world (e.g. by the Western countries 

such as Norway or UK but also by some African 

states) refer chiefly to the level of fiscal burden for extraction 

enterprises (so called upstream). These solutions 

in connection with obligations concerning securing 

the costs of potential reclaim and payment of 

remunerations for potential damages in the natural 

environment may bring additional revenues for the 

state budget and also support the accomplishment 

of pro-ecological objectives (e.g. in Norway an entity 

which obtains a concession must present a relevant 

safeguards, e.g. in a form of bank guarantee, for execution 

of obligations resulting from the concession 

agreement, including the scope of environment protection 

and its reclamation). 

In this context, Polish tax policy seems to be quite 

competitive. Current taxation for extracting entrepreneurs 

does not differ from taxation of the entities 

active in other branches of the industry. Moreover, 

the fees for obtaining the mining usufruct and concessions 

are not too significant in Poland. Recently 

in our country there have been legislative initiatives 

concerning taxation of shale gas. Nevertheless, 

it seems that the proposals to subject the shale gas 

sales to a special tax, without applying such tax to 

conventional gas or oil, will not be introduced. 

Potential implementation of additional/special 

fiscal burdens for the oil and natural gas sector 

should be preceded by the Polish authorities with 

thorough analysis of tax benefits in respect of two 

factors: higher taxes may affect profitability of extraction 

and discourage potential investors to start 

their operations in Poland. Thus, it may translate 

into reduction of employment in these industrial 

branches. The change in taxation system of oil and 

gas sales should be done in a coherent, clear and 

transparent way. 

On the opposite side of taxation restrictions are 

tax reliefs. Their implementation may induce both 

entrepreneurs and consumers to select solutions 

more friendly for the environment. The alternative 

for expensive fossil fuels may also be development 

of technology and promotion of electric vehicles. 

This market without government subsidies develops 

very poorly and strongly depends on the traditional 

fuels market situation. 

Eco automotive industry 

Some particular states of the European Union encourage 

their citizens to buy electric or hybrid vehicles 

promoting first of all pro-ecological attitudes 

connected with protection of the environment and 

reduction of CO2 emission. Governments of many 

countries encourage the purchase of vehicles featuring 

low exhaust gas emission, offering their buyers 

a number of subsidies and relief. Such solutions 

are e.g. in Austria, Belgium, Denmark, France, Ireland, 

Spain, Holland, Germany, Portugal, Romania, Sweden, 

United Kingdom, Italy and the United States. 

For example in the United States up to 7.5 thousand. 

U.S. dollar tax credit can be given when buying a car 

with an electric motor depending on the model of 

the vehicle. However, in Poland those willing to buy 

ecologic vehicles still cannot count on special deductions 

or relief. 

Summary 

Is the Polish government then helpless while facing 

the growth of fuel prices, record breaking oil quotations, 

expensive natural gas or the threat of raising 

maximum limits of CO2 emission standards? It does not 

seem so. In this article we discuss the key fiscal and 

non-fiscal tools to influence the oil and gas market. 

However, the objective is neither to point out the best 

solutions nor to recommend them even more but to 

take part in the discussion concerning the role of the 

state in this strategic sector of economy. In the opinion 

of the authors, it is crucial to consider that apart 

from the proposition quoted many times by the media 

to lower the fuel excise duty rate (what in the light of 

the EU regulations is virtually impossible), the government 

has at its disposal several tools enabling to influence 

the condition and effectiveness of the fuel and 

gas market in Poland and thus stimulating its development 

and investments. 

Tomasz Baranczyk is the Partner in the Tax and 

Legal Services Department at PwC Poland 

Slawomir Huss is the Manager in the Business 

Advisory Department at PwC Poland 

Grzegorz Kus is the Senior Consultant in the Tax 

and Legal Services Department at PwC Poland 


1

16 

At the same time, the Russian party pointed out 

to increasing demand for natural gas in Western 

Europe and the necessity of constructing new routes 

for natural gas supplies in order to guarantee secure 

and undisturbed supplies of gas to satisfy the market 

demand, assuring at the same time that the new 

investment is not directed against any country. This 

position was fi nally adopted by the European Committee 

which considered the Nord Stream pipeline 

as ‘The Project of European Meaning’, thus acknowledging 

it according to the Union energy policy to be 

the key project for providing balanced and safe energy 

supplies for the Community countries. This position 

was at the time regarded as the greatest defeat 

of the Polish diplomacy, whereas for the Nord Stream 

AG, responsible for execution of the Northern Pipeline 

project, it became the principal argument against all 

the opponents. 

Since 9 April 2010, when the construction of the 

fi rst line of the pipeline was commenced offi cially, in 

Poland the discussion on the project has concentrat- 



The Nord Stream Gas Pipeline 

Is there a reason to fear about 

the future of gas fuel supplies 

and prices in Poland? 

JACEK CIBORSKI 

In the recent years there have been many controversies and contradictory opinions concerning 

the Nord Stream gas pipeline, also called the Northern Pipeline. The positions of involved 

parties concerning the eff ect the pipeline may have on various areas of social life, environment, 

policy or economy have been, and most probably will remain completely diff erent. 

At the stage of preparations and gathering necessary investment permits, Central and 

Eastern Europe countries called on to stop its construction. They argued that passing over 

some so far transit countries, may become for Russia the tool of exerting economical and political 

pressure. The Northern Pipeline would make the region insignifi cant on the energy 

map of Europe, which would have a negative impact on security of natural gas supplies. 

ed on the analysis of potential infl uence of the investment 

on the domestic economy and the results for 

domestic natural gas market. In this context, the analysis 

of infl uence of the Northern Pipeline on safety of 

natural gas supplies to Poland and infl uence on gas 

fuel prices in Poland is especially important. 

Nord Stream Gas Pipeline 

– what’s all this fuss about? 

The Nord Stream Gas Pipeline laid at the bottom 

of the Baltic Sea will connect the Russian coast in the 

vicinity of Vyborg with the German coast near Lubmin 

close to Greifswald. Total length of the pipeline will 

be 1224 km. 

The pipeline is to consist of two identical lines 

whose joint transmission capacity will amount to 

55 billion m 3 of gas annually. The investor plans to


Fig. 1. The route of Nord Stream Gas Pipeline. Source: Entsog 

complete the construction of the first line (transmission 

capacity about 27.5 billion m 3 /year) in the fourth 

quarter of 2011 and commissioning of the second line 

will take place a year later. 

The gas reaching Greifswald will be then transferred 

– by means of gas pipelines NEL and OPAL being 

under construction in the area of Germany simultaneously 

with the construction of the Nord Stream 

– westwards and southwards to the markets in Germany, 

Denmark, the U.K., Holland, Belgium, France, the 

Czech Republic and other countries. 

The Nord Stream Pipeline is meant to be a corridor 

which transports natural gas extracted from a new deposit 

in Shtokman field on the Barents Sea to Western 

Europe. However, due to high investments estimated 

at about 25 billion dollar and related to the development 

of the deposit, and on account of limited financial 

value of the Russian party, the project has been 

delayed. The commencement of the deposit exploitation, 

planned initially for 2013 is already unrealistic. 

The Russian party claims that 2016 is a probable time 

of commencing gas extraction from the deposit but 

the analysts consider 2020 to be more realistic, if the 

forecast prices of fuel justify starting necessary investments. 

For the Northern Pipeline it means that the 

fuel necessary to secure transit at sufficient level will 

have to be provided from deposits on the Jamal peninsula 

from which gas is currently supplied to Europe 

by the Jamal Gas Pipeline and the system of Ukrainian 

pipelines. 

The Northern Pipeline and security 

of gas supplies to Poland 

One of fundamental assumptions justifying the 

construction of a new transport corridor for natural 

gas to Western Europe was growing demand of the 

Old Continent for gas fuel. According to estimates, 

by 2030 the consumption of the blue fuel in Western 

Europe should increase by about 60% i.e. about 

160-200 billion m 3 annually with simultaneous depletion 

of European deposits. Securing such gas volumes 

requires execution of new investments both in 

the development of deposits and in construction of 

new supply routes for the fuel. Meanwhile, due to 

the economic crisis, since 2008 the demand for natural 

gas has not only failed to rise but has also been 

reduced by about 10% and it has not returned to the 

level before crisis yet. Diminished demand of the Old 

Continent for natural gas and simultaneous substantial 

increase in the capacity of transmission pipelines 

already at the end of 2011 will mean either substantial 

increase in fuel supply in the European market or 

incomplete utilization of some gas pipelines for the 

requirements of the Russian natural gas transit to the 

countries in Western Europe. 

Taking into consideration the level of investments 

which have been borne by Russia in construction of 

the Nord Stream Pipeline as well as investment requirements 

faced by this country due to the neces- 


17

18 

Nord Stream – basic information 

• Investor 

Nord Stream AG 

• Shareholders 

OAO Gazprom – 51%, BASF SE/Wintershall Holding 

GmbH – 15.5%, E.ON Ruhrgas AG – 15.5%, N.V. 

Nederlandse Gasunie – 9%, GDF Suez S.A. – 9% 

• Length 

1224 km – Wyborg (Russian Baltic Sea coast) 

– Greifswald (German Baltic Sea coast) 

sity of developing new deposits of hydrocarbons, 

the first scenario (increased supplies) seems to be 

rather unlikely. By supplying additional volumes of 

gas fuel to the European market Russia would bring 

about substantial oversupply in the market, in the result 

of which the price of the blue fuel would fall, so 

profits of the Russian concerns would not increase 

as anticipated and in extreme situations they could 

be diminished. 

Since increasing the fuel supplies in the nearest 

years seems rather unlikely now, the start-up of new 

transmission capacities means incomplete utilization 

of the new gas pipeline capacity or limitation 

of the extent of utilization of the traditional routes 

of gas supplies to Western Europe. In this case, taking 

into consideration the necessity of repaying the 

credits drawn by the Nord Stream Company for financing 

the investment amounting to over 5 billion 

Euro (the funds are expected to originate from 

the transmission tariff ), incomplete utilization of the 

new gas pipeline seems unlikely. It can be expected 

then that over a short and medium period at least, i.e. 

till the moment of substantial increase of demand for 

the Russian gas in Europe, the consequence of construction 

of the new transit corridor will be decrease 

in gas transport by the existing gas pipelines i.e. the 

Jamal Gas Pipeline via Belarus and Poland and/or the 

system of pipelines running through Ukraine, Slovakia 

and the Czech Republic. The transmission capacity 

of the Jamal Pipeline amounts to about 33 billion 

m 3 annually. It means that the start-up of the 

Nord Stream Pipeline could totally substitute transit 

of natural gas via Poland to Western Europe. 

The situation looks slightly different for the 

transit route running via Ukraine. The transmission 

capacities of transit pipelines amount to about 

120 billion m 3 and their current load is nearly 75%. 

Limiting the Russian gas transit via Ukraine by the 

amount of transit via the Nord Stream will not elim- 


• 

• 

• 


Transmission capacity 

55 billion m 3 /year (two lines, 27.5 billion m 3 /year 

each) 

Planned investment expenditures 

7.4 billion euro – 30% own capital 70% debt 

financing 

End of Investment 

The first thread of the pipeline – IV quarter 2011; 

the second – IV quarter 2012. 

inate Ukraine completely as a transit country, nevertheless 

utilization of the infrastructure in this 

country will be substantially limited. 

The two presented extreme scenarios of situation 

development will be verified in the next years. 

Finally, despite the Russian declarations that the 

new gas pipelines are not directed against any 

country, the additional transmission capacities will 

permit free regulation of gas transmission between 

Russia and Western Europe, including the possibility 

of stopping or significant reduction of transit via 

selected countries without the necessity of stopping 

supplies to the target markets. By the same, 

the Northern Pipeline may be an additional tool of 

exerting economical and political pressure on the 

transit countries. 

Are natural gas supplies in 

Poland at risk of reduction? 

Analyzing the contract stipulations for supplies of 

gas fuel to Poland, there are no grounds to confirm 

the probability of diminished export. According to 

the annex to Jamal Contract signed by Polish Oil and 

Gas Mining Co. and Gazprom in 2010, the Russians 

will secure supplies of gas fuel to our country till 2022 

and they guarantee utilization of the Jamal Pipeline 

for the requirements of gas transit to Germany till 

2019. Therefore the anxiety concerning security of 

natural gas supplies to Poland, at least in the period 

of validity of the new annex, has no rational grounds. 

Also, the profits for the Polish party from transit of 

gas fuel do not seem to be endangered, even in the 

case of smaller utilization of the Jamal Pipeline for requirements 

of gas transit to Germany. In the annex to 

the contract both parties agreed that the mean an-

20 

nual net profit for the owner of the Polish section of 

the Jamal Pipeline i.e. the company EuRoPol GAZ will 

amount to 21 million PLN (at the prices of 2010), regardless 

of the level of infrastructure utilization. This 

way of calculating the tariff is an additional advantage 

for the Polish gas pipeline in comparison with 

the system of Ukrainian gas pipelines, as it is cheaper 

and with increased infrastructure utilization the unit 

cost of transit is lower. 

Nevertheless, keeping in memory the reduction 

of oil supplies to Mozeiki Refinery after it had 

been taken over by PKN Orlen, as well as limiting gas 

fuel supplies to the European markets as a result of 

conflict between Russia and transit countries (Belarus 

and Ukraine), the contract stipulations do not 

provide complete guarantee of uninterrupted supplies 

of natural gas. Additionally, after start-up of the 

Nord Stream Pipeline, such limitations will not result 

in stopping the supplies to the Western European 

countries, so they can be used as a pressure tool by 

Russia even more freely. This mechanism could be 

additionally enhanced in case of the South Stream 

investment, skirting the Central-Eastern European 

markets and separating them from the Southern 

part of the continent, which would lead to complete 

elimination of the Jamal Gas Pipeline and Ukrainian 

pipeline system in supplies of the Russian gas to 

Western Europe. 



Nord Stream and the blue 

fuel prices in Poland 

However, anxieties concerning adverse influence 

of the Northern Pipeline on gas fuel price levels in 

Poland seem to be unjustified. The price formula for 

natural gas binding on the basis of the Jamal Contract 

is based on changes in stock exchange quotations 

of oil-related products. At present, due to high 

quotation levels for oil and oil-related products the 

price of gas fuel imported from Russia reaches high 

levels. The contract price of the Russian gas is not 

reflected in quotations of fuel in fluctuating markets 

of North America or Western Europe in which the 

price of gas fuel was reduced significantly due to 

rapid development of gas extraction from unconventional 

deposits. However, such price formula is 

characteristic for most of the contracts for natural 

gas supplies from Russia to European markets. Also, 

supplies of Russian gas to the German market had 

been executed on analogous principles until quite 

recently and only last year, due to occurrence of significant 

differences in gas prices resulting from the 

contract formula and spot market gas prices, the 

German concerns negotiated partial reference of 

the price formula to the market quotations of natural 

gas. Due to specificity of the Polish market, which 

South Stream – the investment with Gazprom and ENI as partners, with planned transmission capacity 

63 billion m3 of natural gas annually, skirting the current transit countries from the South. The investment 

is a competitive project to Nabucco, which would secure natural gas supplies to Europe from deposits 

in the area of the Caspian Sea, Middle East and Egypt, making Europe partially independent from the Russian 

gas supplies. Planned capacity of the Nabucco Pipeline amounts to 31 billion m3 of gas annually and 

the partners interested in the investment are BOTAS, BEH, MOL, OMV, RWE, Transgaz and each of them has 

16.67% of shares in the company established to prepare and construct the gas pipeline. 

Fig. 2. Planned route of the Nord Stream, South 

Stream and Nabucco Gas Pipelines. Source: Europe’s 

Energy Portal 

Nord Stream 

South Stream 

Nabucco


is (contrary to e.g. German market) isolated from 

other markets of the European Union and it does 

not have any real chance to secure supplies of inexpensive 

gas fuel from other markets, renegotiation 

of prices and at least partial reference to the market 

price is rather unlikely. At the same time in the 

gas contract there is no mechanism which would result 

in deterioration of current price conditions for 

gas fuels exported to Poland by Russia and which 

would be directly connected with creating the Nord 

Stream transport route. 

Scenario for Poland 

Having no direct influence on the investments 

executed in its neighbourhood, Poland has to take 

action targeted to secure the state interest in respect 

of gas supplies. In case of the gas market the 

security of fuel supplies to Poland can only be guaranteed 

by developed industrial infrastructure which 

would facilitate real diversification of fuel supplies 

to the country, and storage infrastructure which 

guarantees satisfying the market demand, while alternative 

supplies are organized in case of stoppage 

or limited supplies within the existing contracts. 

In the area of expansion of the transmission infrastructure, 

the steps taken by the operator of the 

Polish natural gas transmission system should be 

evaluated positively. The GAZ-SYSTEM Company 

has executed investments which are targeted at development 

of the infrastructure and construction 

of connections with the neighbouring systems. In 

2011 the Company plans to make new transmission 

capacities available on connections with the Czech 

system in Cieszyn and with the German system in 

Lasow (about 0.5 billion m 3 annually each). These 

connections will not change significantly the picture 

of the Polish market, however, they are the first 

investments targeted at providing supplies from directions 

alternative to the Russian one – complete 

eradication of limitations resulting from the historical 

conditions require more time and large investments. 

The GAZ-SYSTEM Company are also progressing 

in construction of regasification terminal 

in Świnoujście, which is executed by a subsidiary 

company – Polish LNG. Commissioning of the terminal 

in 2014 will mean opening of a new chapter 

in the domestic transmission system and will enable 

real diversification of gas supplies. The Company is 

also preparing the procedure to make free transmission 

capacities available in the Jamal Pipeline. The 

following investments in the intersystem connections 

in the West and South of Poland are planned 

after 2015. The PGNiG Company is responsible for 

construction of natural gas reservoirs and according 

to its strategy, by 2020 it plans to double the possessed 

capacities. 

The developed gas infrastructure and regulations 

which enable competition in the natural gas market 

create the basis for regulation of the gas fuel prices 

by the market. A large number of entities dealing 

with natural gas facilitate the construction of tools 

Despite the Russian declarations that 

the new gas pipelines are not directed 

against any country, the additional 

transmission capacities will permit free 

regulation of gas transmission between 

Russia and Western Europe, including 

the possibility of stopping or signifi cant 

reduction of transit via selected countries 

without the necessity of stopping 

supplies to the target markets. By the 

same, the Northern Pipeline may be an 

additional tool of exerting economical 

and political pressure on the transit 

countries. 

of commercial gas exchange, such as exchange platforms, 

stock exchange or gas hubs, which allow the 

creation of real market price formation of the blue 

fuel. Complete market facilitation in the natural gas 

sector is the question of at least some more years 

though. Until then, the natural gas prices will be influenced 

by the macroeconomic situation and quotations 

of oil-related products, on the basis of which 

indexation of gas fuel is done, the path of liberation 

of the natural gas market is accepted and (perhaps 

the most vital thing) economical feasibility of unconventional 

gas deposit exploitation is confirmed 

in Poland. It is the price of gas from unconventional 

deposits, in case of its extraction, that will create the 

reference for the market gas price in Poland and in 

the region over the long term perspective. 

Jacek Ciborski is the Senior Manager in the 

Business Advisory Department at PwC Poland 


21

OIL: 

exploration, 

extraction, sales

24 

Actually, it is worth asking why the sizes of these 

things are such important issues that there is a 

completely new fi eld of knowledge of which new applications 

are still discovered. In order to answer this 

question, one should be aware of the fact that the 

length of one nanometer is only ten times bigger than 

the diameter of a single atom of many elements, so 

there is clear impact on periodic electron properties 

and other quantum eff ects on the basic matter properties 

which in this scale may undergo fl uctuation with 

no changes in the chemical composition. The formation 

of virtual particles in vacuum is responsible for 

the Casimir eff ect (creating the force of attraction between 

two planes lying close to each other in nano 

scale, caused by diff erent amount of virtual particles 

which are forming outside and between these two 

planes) and their quantum blurring is the reason for 

tunnel eff ects and their “crossing” through energy barriers. 

The close range forces which are not observed 

in the macro world act an essential role in behaviour 

of objects. Additionally, the set of nanoparticles has 

a substantially developed surface which can be used 

as a chemical reaction fi eld and as an area of physical 

interactions with other substances, which leads to 

formation of compound, light, unusually resistant and 

elastic materials. As a matter of fact, as Richard Feyn- 


OIL: exploration, extraction, sales 

Nanotechnology in oil industry 

How a dwarf became a giant… 

PROF. DR MICHAŁ KRASODOMSKI 

Nάνος in Greek means dwarf. “Nano“ is the word from which comes the prefi x indicating that it is 

the billionth part of the decimal system unit, for instance 10 -9 meter is 1 nanometer. In order to understand 

what sort of size we are dealing with, one should imagine the moon whose diameter is 

about 3.500 km and a pea (diameter about 7 mm) or even a sorghum which is half the size of a 

pea (diameter ≈4 mm). The sorghum diameter is about a billion times smaller than the moon diameter. 

How then can one imagine the size of nanometer? Well, a poppy seed of about 1 mm diameter 

is ”only” a million times as big as this unit, but a pumpkin of a diameter of about 1 m can 

function as a moon for a carbon nanotube section or a C80 fullerene molecule diameter (≈1 nm). 

man noticed, in the scale “there’s plenty of room at the 

bottom” which enables particularly eff ective miniaturization 

of constructional elements, e.g. in electronics. 

Silver from the perspective of ”nano” 

Nanostructural products are not the achievement 

of the recent several dozen years. Tinting stained-glass 

to purple with golden nanoparticles dates back to the 

antiquity. Antibacterial properties of silver nanoparticles 

have also been known for a long time. In the Middle 

Ages the most valued tableware with respect to 

health was the silverware and silver coins were used 

for water disinfection in the Roman Empire. Silver nanoparticles 

of various size constituted the basis for a 

classical photography. However, it is hard to interpret 

these examples as a conscious nanotechnology 

production. 

Nanotechnology is a branch of knowledge connected 

with production and use of elements of sizes 

similar to the chemical compound particle size and 

conscious use of their unusual properties which result 

from the laws of chemistry and quantum physics. At 

present, it is assumed that what nanotechnology is in-


Moon – diameter of 3472.0 km = 3.472×10 9 mm 

terested in is the group of objects from which at least 

one size is about 1 to 100 nanometers [3], so it concerns 

issues connected with the knowledge of these 

objects’ properties [4], their creation and the ways in 

which they can be used. 

Truly speaking, the term ”nanotechnology” appeared 

in the works of Taniguchi [5] but the problem 

of operating with substances in a small scale and operating 

with even particular atoms and using them in 

practice won a huge renown from the moment when 

in 1959 Richard Feynman gave a famous speech at the 

American Physical Society meeting. The significance of 

this subject grew along with the development of computer 

techniques and the need for packing more and 

more electronic elements on a smaller surface of proc- 

Sorghum – diameter ≈ 4 mm 

Pumpkin ≈1 m = 1×10 9 nm Carbon nanotubes – diameter 1÷2 nm 

Fig. 1. Scale of things. Photographs – Moon [1], Carbon nanotubes (SWCNT) electron microscope image [2] 

essor. The already mentioned Feynman paper concerned 

the possibility of solving problems from various 

fields of knowledge combining issues of changing 

the scale of influence which facilitate gaining, recording 

and reconstructing information. However, above 

all, it indicated the basic control directions and matter 

operating elements in atomic scale and it stated that it 

is possible that the basic laws of physics may probably 

have the possibility of creating things with the use of 

single atoms as building blocks. 

Nanotechnology basically means constructing systems 

functioning in corpuscular scale but such a restriction 

seems to limit the huge area of issues. Techniques 

connected with nanotechnology may be useful 

for understanding and solving these issues. It is true to 


2

26 



say that from the moment this word appeared in science, 

it gained popularity on a grand scale. One of the 

reasons why it happened this way is that the research 

in the “nano” scale enabled profound understanding of 

many phenomena and it also gave hope for solving 

a wide range of unsolvable problems. The other reason 

is marketing, because the term “nano” suggested 

something new, unexpected and above all something 

more perfect in the sense that it was functional, which 

often, but not always, has been and still is true. 

Apparently, the main beneficiaries of the Feynman 

idea are: information technology, especially the study 

on miniaturization of integrated circuits, creating a 

quantum computer and biology – particularly explaining 

life mysteries and the perspective of creating tools 

which enable fighting with dangerous incurable diseases. 

It is worth mentioning that there is a research 

carried out on photovoltaic cells that are supposed to 

popularize the use of solar energy and fuel cells. The 

latter ones have an important aim which is natural 

environment protection through the reduction of exhaust 

fumes. 

Already today [6], a common man deals with many 

products of nanotechnology which make life easier or 

more beautiful. Compound materials for constructing 

tennis rackets partly made from carbon nanofibres 

are very elastic and have a hundred times higher 

endurance than steel fibres and they are six times 

lighter. Hockey and skiing sticks and skis have similar 

features. Owing to nanostructures, new car varnishes 

are more scratch resistant than the ones used now and 

the waxes used for giving shine contain nanoparticles 

polishing agents. Socks and underwear impregnated 

with silver nanoparticles have antibacterial properties, 

just like some cleaning substances, nanoemulsions are 

used for fighting a wide group of pathogenic bacteria 

(e.g. tuberculosis). At present, the textile industry is 

also using nanotechnology. There are fabrics that are 

easily cleaned, stain resistant and highly comfortable, 

which maintain optimum conditions for the human 

body. The majority of cosmetic products owe their 

unique features to nanotechnology. Among them are 

creams which contain agents protecting from ultraviolet 

radiation, deodorants and antiperspirants. In the 

area of functional electronics, an interesting application 

of polymer nanolayers which emit light under the 

influence of electric field are OLED displays, already 

known from mobile phones. 

The oil and petrochemical industry is currently situated 

slightly off the main current of nanostructural 

studies development. Nonetheless, the interest in nanotechnology 

[7] is still growing in this sector. The research 

development is continued and interesting solutions 

appear – they are going to be presented further 

in his article.


Scanning tunneling microscope 

When an idea of using objects of corpuscular sizes 

appeared (1959), almost after a quarter of a century (in 

1982) a tool was made which enabled to visualize surfaces 

in atomic scale – scanning tunneling microscope 

(STM) [8], constructed by IBM scientists Gerd Binnig 

and Heinrich Rohrer, the Nobel prize for Physics winners 

in 1986 (the scheme of this device’s operation is 

shown in the Fig. 2). 

This device was supposed to measure the tunnel 

current which flows between the tip and the sample. It 

controlled the position of the tip with reference to the 

sample which at the same time enabled reconstruction 

of the form of examined surface. Unfortunately, 

this tool could only work for current conductors. The 

progress in research connected with STM construction 

encouraged further search for solutions of techniques 

which enable creation of a surface image in atomic 

scale. The core of the idea was the use of van der 

Waals forces; in 1986 a team of the already mentioned 

Gerd Binnig, Calvin F. Quate and Christoph Gerber constructed 

the first atomic force microscope. Its operation 

is shown in Fig. 3. 

The laser ray hits a mirror situated on an resilient 

lever, cantilever with a tip, and after reflection – goes 

to the photodiode. The tip made from silicon nitride 

or silicon moves along the sample surface (a contact 

mode – CR, distance < 0.5 nm, van der Waals repulsive 

forces are dominant), or in a close distance to the sample 

(1 to > 10 nm, non-contact mode – NCR, van der 

Waals attractive forces are dominant). 

In the case of the contact mode if the constant of 

the tip resilience is smaller than the constant of the 

surface, the resilient cantilever bends. The repulsive 

force works on the tip and in order to keep a constant 

Fig. 2. The principle of scanning tunneling microscope 

operation 

elastic strain of the cantilever, the force between the 

tip and the sample is changed in such a way that it 

keeps its constant value (feedback). The achieved signal 

is used to form a surface image. 

In the non-contact mode the tip is set in vibration 

of an amplitude of several nanometers and of frequency 

close to that of resonance. Forces of attraction are 

working here and their gradient is the function of the 

distance from the tip to the sample and the frequency 

of the tip vibration changes along with the gradient. 

During the tip movement over the surface, the system 

measures the changes of frequency and amplitude vibration. 

The measured distance changes are from several 

to several dozen nanometers and the distance is 

the function of attracting powers connected with the 

van der Waals forces. 

The tapping mode gained recognition as a result 

of the AFM microscope techniques development. This 

technique enables to receive surface images in high 

definition. These are the surfaces which might be easily 

damaged, e.g. components poorly bonded to each 

other. This mode helps to avoid problems concerning 

the friction, adhesion, electrostatic forces and other 

difficulties which are connected with the above mentioned 

modes. The solution is to use alternate tip contact 

with the sample surface, which provides high definition 

and raising it so high that it does not cling to the 

surface to avoid moving the tip end along the surface. 

The mode works when the tip oscillates almost as frequently 

as the cantilever resonance; the piezoelectric 

phenomenon is used for that. The system enables cantilever 

oscillation with the ≈20 nm amplitude. When 

the tip does not touch the surface, it is moved along 

the surface until the tip touches it again. While scanning, 

the tip which oscillates vertically touches the surface 

or is raised. The oscillation frequency is from 50 to 

Fig. 3. The principle of atomic force microscope operation 

[9] 


27

28 

Fig. 4. Scheme of intercorpuscular forces interaction in 

different modes of atomic force microscopy 

100 kHz. Since the oscillating cantilever sometimes 

touches the surface, losing energy by the same time, 

the reduction of the amplitude oscillation is used for 

measuring the surface features. 

The way the probe tip interacts with the surface 

and the observed intercorpuscular forces are shown 

schematically in Fig. 4. The resultant curve shown here 

is the outcome of placing the repulsive forces of the 

particles which are in a close distance (these forces are 

in approximation inversely proportional to the twelfth 

power of the distance) and it results from the attraction 

forces (in approximation inversely proportional to 

the sixth power of the distance). 

Worth mentioning is the fact that the interpretation 

of the gained analytic signals in all of the AFM 

techniques is quite difficult. Apart from van der Waals 

forces, there are other various forces that can inter- 



act with the tip moved through the tested surface, 

e.g. force of friction, magnetic forces and electrostatic 

forces. Additionally, the form of the tip, especially its 

deformations, can influence the obtained information. 

The tip which moves through the surface may be easily 

destroyed and the surface can become deformed. 

It is important to separate the measuring system from 

external disruption sources (various quakes) which can 

blur the gained image of the surface completely. 

Despite the mentioned difficulties, the idea of 

nanostructures creation gained basic research tools 

which enable experimental testing and visualization of 

the results of conducted research. 

Atom manipulation 

Additionally, STM microscopy is used for surface 

imaging and other tasks. A microscope might be a device 

used for manipulating particular atoms on a specific 

surface. The first operations were carried out in 

laboratories of a well-known computer company IBM. 

As a result of these operations, a world famous image 

of the company’s trademark was obtained, shown in 

Fig. 5 which also depicts nanonotation of the word 

”atom” coming from the IBM collection. Nota bene it 

was in this company that inventors of both types of 

microscopes worked. The microscopes facilitate observations, 

operating in nanoscale and operating with 

single atoms. 

The way the nanomanipulation is carried out, after 

locating the atom to be relocated, can be done in two 

directions: 

• the tip lowers to touch the atom, then this atom 

”sticks” to the tip which is moved with it to the 

destination position and the tip rises and then 

Fig. 5. Xenon atoms on the surface of nickel, creating a notation of the IBM`s trademark, and the word ”atom” which in 

Kanji literally means ”first born”, it is built from iron atoms on copper. Both images formed in IBM [10]

• 


its lowering and touching the surface makes the 

atom move to a new location (field stimulated 

diffusion), or 

a short tension impulse which is passed on to 

the tip transports the atom from the surface 

to the tip and the tip is moved to the destination 

and the atom is placed on the surface after 

stimulation with an appropriate electric impulse 

(electromigration). 

More or less at the time that the described microscopes 

were created, the first carbon nanostructure 

was discovered – fullerene (1985) and in 1991 carbon 

nanotubes (Fig. 6). We had to wait until 2004 for the 

discovery of the simplest carbon structure – graphene 

and it was discovered by an unbelievably primitive 

method. The idea was to tear off the arranged layers 

which consisted of carbon atoms from the graphite 

surface [11]. The more technically advanced method of 

obtaining graphene which has a chance for industrial 

use was suggested in 2011 by Polish scientists under 

the direction of Włodzimierz Strupiński from the Institute 

of Electronic Materials Technology [12]. 

Currently, there are many carbon nanostructures 

known. Apart from fullerenes with various numbers 

of carbon atoms which create structures that not always 

have circular shape [e.g. [13], there are single and 

multiwalled carbon nanotubes [14], and also carbon 

ring structures of a diameter more than about 100 nm 

[15], or nanocones used in construction of gas sensors 

[16]. Nanosphere chains [17] which are similar to pearl 

necklace are an interesting material. They are highly 

elastic, have a low density and perfect electrical conduction 

and they are hydrophobic. 

The knowledge of carbon nanostructure increases 

and at the same time there are more and more reports 

about nanostructure materials which consist of other 

elements. One may wonder what unique features of 

nanomaterials can be used in refinery and petrochemical 

industry? Can the properties of basic oil products 

be modified by the use of nanotechnology and how 

can they be modified? 

Nanofluids – liquids which 

contain dispersed nanoparticles 

The researchers at Argonne company [18], while 

working on high-efficiency cooling liquids in 2002 noticed 

that the addition of small amounts of solid particles 

to cooling liquids rapidly increases its thermal 

conduction. The most essential part of this phenomenon 

was the size of particles which should not exceed 

several dozen nanometers. It was proved that thermal 

conduction of ethylene glycol rises by 20% after introducing 

≈4% of copper oxide nanoparticles of average 

size of ≈35 nm. Similar effect has been observed after 

the dispersion of aluminium oxide nanoparticles in 

water. The use of dispersion of copper nanoparticles 

in ethylene glycol had a better result than the use of 

its oxide. 

During the last few years the interest in a group 

of nanofluids, called smart fluids is growing. These 

fluids’ properties can undergo reversible changes 

under the influence of magnetic resonance (MR) or 

electric resonance (ER) and other external factors 

[19]. One of the examples of MR fluids is shock absorber 

fluid used in high class cars [20] which is iron 

nanoparticle suspension in mineral, non-polar oil. 

Viscosity of such dispersion depends on the applied 

magnetic resonance which enables control of the 

Graphene C60 Fullerene 

Carbon nanotube 

Fig. 6. Basic carbon nanostructures 

muting process of mechanical oscillation in a way 

which is suitable for the condition of a road surface. 

However, ER fluids [21, 22] are mostly nanodispersions 

of titanium oxide. The applied electric resonance 

causes the increase in flow resistance mainly 

caused by changes in resilience and border of dispersion 

flow. They are easier to use in practice than 

the MR fluids (the metal casing of the device can be 

one of the electrodes) but they are more sensitive to 

pollution. Worth remembering is the fact that an important 

feature of such systems is complete reversibility 

of the appearing phenomena which enables 

the control of their behaviour. 


29

30 

Another property of intelligent fluids is the ability 

of surface tension change under influence of external 

factors which results in increasing or decreasing the 

surface curvature of interphase fluid contact which 

enabled construction of microlenses of variable focal 

length [23]. 

”Nano” in petrochemical industry 

The possibilities of ”smart” fluids use in petroleum 

output are shown in the survey article [24]. During the 

upstream process, drilling systems are used to which 

sludge is injected in order to transfer the force in hydraulic 

thrust during transport of the crushed rock to 

the surface, to collect heat created while drilling and 

stabilize the borehole. The sludge can penetrate the 

borehole walls and damage them by water blockade 

or by a change in dampness of the rock close to the 

borehole, which influences the parameters of its productivity, 

complicates the progressing works and in 

consequence – makes the borehole exploitation more 

difficult. 

One of the possible solutions are, for instance, the 

SDA (self-diverting acid) remediation fluids which have 

a networked polymer. The polymer, which contains 

acid structures, is selected in such a way that its viscosity, 

which has a low pH value, remained also low 

but when the pH value increased and was connected 

with acid structure depletion – it increased many 

times, leading to reduction of borehole wall permeability. 

In other types of fluids viscoelastic surfactants 

(VES) [e.g. 25] are used. In the presence of saline water 

(brine) or in interaction with oil and gas, VES create 

elongated micelles which practically do not change 

the velocity of flows in the deposit. Nonetheless, when 

there is a certain critical concentration they become 

networked, causing a sudden increase in viscosity and 

they block the flow of fluid in the deposit. 

The review of issues which might be solved by the 

use of nanoparticles is presented by Abdo and Haneef 

[26] in their work. They indicate that most of the encountered 

problems are connected with the rheological 

properties of drilling sludge and the unexpected 

changes caused by working conditions. 

Nanomaterials also have other applications in drilling 

works. The introduction of nanoparticles of amorphous 

carbon to drilling sludge reduces the possibility 

of drilling pipes blockage [27]. The use of zinc 

oxide nanoparticles in drilling sludge improves the 

degree of hydrogen sulphide removal [28]. The use 

of the already mentioned MR fluids, which contain 

iron oxide nanoparticles in bentonite sludge compositions, 

modifies the interparticle interaction and 



increases the drilling fluid viscosity [29], at the same 

time facilitating the control of its properties by magnetic 

resonance. 

Great hopes are connected with the opportunity of 

using nanoparticles in drilling sludge which operates in 

unusually difficult conditions while making very deep 

boreholes and in horizontal drilling (for example during 

the exploration of shale gas deposits). This subject 

was recently [30] taken up by Phuoc Tran and David 

Lyons, scientists from the National Energy Technology 

Laboratory in Pittsburgh. The planned drilling sludge 

should meet requirements, such as high temperature 

and pressure in deep boreholes with an appropriate 

lubricant and the ability to transfer huge amount of 

heat. This fluid, which, among others, consists of bentonite 

should be environment friendly. According to 

researchers, the use of nanoparticles dispersion ought 

to give many positive effects, for instance it might increase 

the sedimentation resistance when surface 

forces balance the gravitation and in many cases the 

rheological, thermal, mechanical and electromagnetic 

properties of nanoparticles exceed the initial material 

features. 

Lubricity additive 

The additives which improve functional properties 

of oil products are mainly lubricity additives. Deterioration 

of fuel and engine oil lubricity connected 

with sulphur content reduction was a result of elimination 

of harmful substance emission to atmosphere. 

This pro-ecological direction of activities, on the one 

hand, led to environmental friendly changes, but on 

the other hand, it resulted in growing wear and tear of 

the engine friction elements. The proper refining additives 

which contain sulphur and phosphorus should 

prevent from friction. Therefore, it was essential to 

search for new generation substances which improve 

the fuel and engine oil lubricity properties. In order to 

rise to the challenge [31, 32], the use of environment 

safe additives was patented which contain boron (nanoparticles 

of boric acid). Carbon nanotubes (CNT), as 

substances which improve fuel and lubricant properties, 

are also the subject of many patents (e.g. [33, 34]). 

In the case of fuels, people strive for improvement of 

the consumption speed, antipinking properties of fuels, 

improvement of electrical conduction and increase 

in viscosity. In the enumerated patents the amount of 

added CNT is quite large, it is from 0.01% (m/m) to 

15% (m/m), and their diameter is smaller than 0.1 mµ, 

with the diameter to length ratio of at least 5. 

The mentioned reservations do not correspond to 

the knowledge of modern CNT whose diameter is usu-


ally about 1 to 5 nm, which is a several dozen times 

smaller quantity. Also the dosage level, at high prices 

of nanostructures, makes the estimation of the possibility 

of its use doubtful. It has to be emphasized that 

carbon nanoparticles which are able to catch free radicals 

can be used as antipinking properties in fuels and 

as additives which raise cetane numbers in diesel fuels. 

They also show the ability to speed up the process of 

combustion and because of a significant reduction in 

exhaust fumes smoke out they make the exhaust gas 

safer for the environment. The addition of an appropriate 

amount of carbon nanoparticles improves also 

the electrical conduction of fuels which is important 

because of the danger of electrostatic charge concentration 

on container surfaces – it might be the cause 

of fire. Carbon nanoparticles counteract the negative 

aspects of the presence of metals which catalyze the 

oxidation processes occurring in fuel storage. 

Another carbon nanostructure, fullerene, was the 

subject of patents nearly since their discovery in 1985. 

The composition of fuels for turbojet engines is established 

very carefully because of safety reasons and in 

order to provide maximum energy which is produced 

from fuel combustion. One of the ways of fuel quality 

optimization [35] is to get the greatest possible density 

and consequently a higher calorific value. Because carbon 

has high calorific value and relatively high specific 

gravity, many attempts were made in order to put carbon 

particles to fuels in various forms – however, with 

no great success because of problems with obtaining 

complete combustion of the particles put inside. According 

to the idea presented in patent description, in 

order to get fuel of higher calorific value, there must 

be a certain amount of fullerenes added or their derivatives 

of high specific gravity from 25 to 50% (m/m) 

to jet or rocket fuel. Worth noting is the fact that the re- 


31

32 



served fullerene concentration in fuel suggests the use 

of such mixtures as components of solid and rocket 

fuel, but not turbojet fuel. The fullerenes used and their 

mixtures seem to have a cage structure which contains 

60 and 70 carbon atoms. An advantage of the suggested 

mixtures is the introduction of high specific gravity 

carbon which evaporates and sublimates much faster 

than common carbon particles, because fullerenes 

and their derivatives are relatively volatile. Apart from 

that, fullerenes can be subject to modifications and 

the size of their particles can be selected in such a way 

that it could improve their solubility or dispersion in 

hydrocarbonic media and it can optimize the combustion 

speed or susceptibility to oxidation. The fullerene 

derivatives used nowadays contained added function 

groups which enable the combustion (oxidation) process, 

such as: peroxide, perchloride, alkene, acetylene, 

nitrate and nitrite. In engine fuels [36] fullerene dosage 

was suggested at the level from 0.1 to 3.5 g/l, and 

what is more interesting – compounds of analogical 

structure were mentioned. However, these had in their 

structure boron or nitrogen atoms. According to the 

patent description, the addition of C60 and C70 fullerenes 

to engine fuels in a ratio of 9÷1, enables to gain 

the desired octane number of the fuel and it improves 

its lubricity which makes it particularly useful for twostroke 

engines. Fuel obtained in this way shows unusually 

good anti-wear and tear qualities, even though it 

changes the colour (solutions of fullerene in hydrocarbon 

are violet). At the same time, there is a significant 

improvement in fuel combustion process and the reduction 

in emission of harmful fume components. 

Another patent [37] suggests that fullerenes can be 

used for low temperature properties improvement of 

natural and synthetic hydrocarbon fuels, lubricant oils, 

petroleum, heavy fuel remains, fuel oils and distillate 

fuels. Fullerenes are also used in the process of base 

oil dewaxing, which is used for engine oil production. 

The function of the already known low temperature 

additives consists in their interaction on the structure 

of paraffin crystals in order to stop its growth at such 

small sizes, which will not lead to fuel filters and fuel 

pipes blockage. In the case of fullerenes, according to 

patent description, particularly effective are amine derivatives 

of fullerenes which contain at least one alkyl 

substituent of a relatively long carbon atoms chain. 

These are mostly alkyl derivatives of fullerenes and aniline 

combinations, phenylofullerenes adducts and reaction 

products of alkyl esters of diazoester fullerenes. 

Reduction of toxic substance emission from Diesel 

engines can be made with the use of the substances 

added to fuel which catalyze the combustion process 

(FBC – fuel born catalyst). Such an additive is an 

Oxonica Energy [38] product called ENVIROX which 

has an active component, cerium oxide, actually na-


noparticles of this oxide whose diameter is from 5 to 

25 nm. The developed additive raises certain doubts 

of EPA [39, 40, 41] who think that the cerium oxide nanoparticles 

brought in the environment along with exhaust 

gas might be a threat to health. Even though the 

toxicity of cerium oxide is comparable to the toxicity 

of table salt, the form of the emitted nanoparticles (of 

a needle) from an engine can pose a serious threat, especially 

when it is inhaled. Research shows that while 

larger particles are retained in lungs, some types of 

nanoparticles, which are smaller than 100 nm, can 

migrate to lung padding tissues and can move with 

the blood flow. In some cases they can get to the cell 

nucleus with chromosomes. EPA think that although 

it does not matter how fuels are consumed with the 

addition of ENVIROX because they emit less soot, they 

can create a new kind of particles which are dangerous 

for to humans. 

FBC additive – analogical when it comes to the 

way it works, but based on iron oxide nanoparticles 

– was developed in the Insitute of Petroleum Technology 

(now Oil and Gas Institute) [42] as a result of many 

years of research, and safer because of the properties 

and form of the iron oxide aggregate which is produced 

from the burning process. As far as it is known, 

it does not pose a threat to the environment or the human 

organism. 

Catalysts 

Another group of nanoparticles use are catalysts. 

These materials use a huge surface which might be 

the carrier of various kinds of catalytic centres, or large 

number of separate nanostructures. One of the examples 

of such use are catalysts which reduce the emission 

from combustion engines. The Nanostellar, Inc. 

company, which works in the nanocatalysts area, suggested 

the use of gold nanoparticles in using up the 

catalyst which reduces hydrocarbon emission from 

Diesel engines [43]. According to the company’s information, 

the use of Nanostellar NS GoldTM oxidation 

with gold nanoparticles in vehicles of low- and 

high-loaded Diesel engines reduces the NOx emission 

to more than 40% with reference to the existing plati- 


33

34 

num catalysts, at comparable costs. Independent tests 

of this catalyst proved that its ability to oxidize hydrocarbon 

also increases from 15 to 20% at similar costs of 

noble metals. 

Also in industrial processes there are catalysts 

which contain nanostructures. Fuels produced from 

renewable sources, biofuels, are the subject of interest 

of many research centres. In the case of diesel 

oil they are associated with methyl esters of fatty acids 

– FAME. Currently, its production requires carrying 

out of transesterification with methanol, vegetable 

oil. There are certain acidic or alkaline catalysts 

used in this process which have to be removed from 

the obtained fuel. Scientists from Oak Ridge Nation- 



al Laboratory’s Nanoscience Center company, Sheng 

Dai and Chengdu Liang, on the basis of solid acid, 

created [44] a nanocatalyst, which when substituting 

other catalytic materials, might be put into the 

filter column where flows the material transformed 

to biofuel. 

Presently, the same materials (crops, potatoes 

and oil plants) are used for fuel and food production. 

New generation fuels will be produced from 

the process of lignocellulose (timber waste, straw 

and the like) decomposition. Further information 

on the subject is presented in the University of Massachusetts 

[45] compilation which states, among 

others, that liquid alkanes can be produced directly


from glycerol in integrated process which connects 

catalytic conversion with Fischer-Tropsch synthesis. 

Concentrated glycerol solution (e.g. 80%) at first 

moves through the catalyst which contains PtRh nanoparticles 

marked on carbon (temperature 548 K, 

pressure 1÷17 bars). The product from this reaction 

at identical pressure and temperature is contacted 

with a catalyst which contains Ru nanoparticles on 

titanium oxide which leads to liquid alkanes formation. 

The possibility of the use of biomass as material 

for biofuel production is very interesting. Biomass 

contains cellulose, hemicellulose and lignin 

and might be used in new nanocatalysts and ion 

liquids which create possibilities of running proc- 

esses in an environment of completely dissociative 

solvent [46]. 

Half-permeable membranes are an interesting 

nanotechnology application which leads to obtaining 

porous materials of a certain pore size. An important 

technological achievement, at the University of 

Twente, used in biofuel production, is obtaining a molecular 

sieve which is high temperature resistant [47]. 

This is the new type of membrane which can work long 

hours in 150°C (constant test lasted 18 months) and is 

used for the removal of water from solvents and biofuels. 

Gained product is the hybrid nanomaterial which is 

a combination of polymer and ceramics (construction 

scheme in Fig. 7). Water particles permeate through the 

membrane, which causes the product drainage. The 

suggested method of water removal is much cheaper 

than the distillation used for this purpose. 

Similar nanomembranes can be used for the removal 

of solid pollutions from gas and the separation 

of metals from heavy petroleum [48]. 

Nanostructural polymers 

Nanostructural polymers of a layered structure 

might be used for hydrogen storage. Hydrogen is ecologically 

the clearest fuel, because during processes 

which enable the energy gain (combustion, electrochemical 

reactions in fuel cells) it gets water which 

is the main component of all living organisms. The 

basic difficulty in its use is the problem of its safe and 

efficient storage. The existing premises indicate that 

nanotechnology facilitates an easy way of hydrogen 

storage. In the already mentioned Argonne company, 

a new nanostructural polymeric material [49] 

was drawn up and is used for hydrogen storage. In 

Fig. 8 there is a schematic structure of the polymer 

depicted. 

A solution for another problem is the use of sorption 

properties of nanoparticles which has a special 

structure for water purification from oil spill. The results 

of research conducted at the University of Rice 

(Houston), which are described in Environment News 

Service [50], are very interesting. Polysegment nanoparticles 

in the shape of sticks were created as a result 

of combination of two nanomaterials: carbon nanotube 

and metal. Both of them have sorption properties 

which cause collection of oil drops suspended in 

water and their accumulation in larger agglomerates. 

What is more, ultraviolet radiation and magnetic resonance 

can change the character of such nanostructures 

and can release their content. In this case, carbon 

nanotubes are initial materials for structure synthesis. 

On top of it there is a short golden segment (nanowire) 


3

36 

Fig. 7. High temperature membrane filter structure 

Fig. 8. Hydrogen particles (blue balls) are adsorbed inside 

the layer polymer 

Fig. 9. Model of one of the peptides carrying a unique 

name: AcMKQLADSLHQLARQVSRLEHA-CONH2 [53] 



given (segments from other materials can be added 

to nanotubes in the same way). The golden ending of 

nanostick has hydrophilic properties and the carbon 

one – hydrophobic. After putting these nanostructures 

into oil suspension in water (OW) the liquid becomes 

yellow (hydrophobic carbon part of the nanostick is directed 

to the inside of the drop). In the water suspension 

in oil (WO) it is just the opposite, the golden nanoparticles 

endings are directed to the inside of the drop 

of water and the solution becomes dark. Worth noticing 

is the fact that during the type change of OW to 

WO emulsion, the release of the substance starts. The 

substance is contained inside a micella, which suggests 

the gained hydrocarbon material might be recycled 

and it might be used for construction of nanocapsules 

for giving medicine. 

Pepfactant 

”Changeable” surfactants of peptide structure which 

started to be called ”pepfactants” seem to be very interesting. 

These substances were obtained quite recently 

(2006) by Australian researchers [51, 52]; it is 

possible for them, in a reversible and controllable way, 

to create or divide emulsions and foams. In terms of 

chemistry these are compounds of peptide structure 

(Fig. 9) which is based upon the structures of substances 

which appear in living organisms and consist of a 

chain of certain aminoacids combined with amide 

bonds. 

Pepfactants, which enable a reversible change of 

surface properties of mineral oil emulsion and water 

and at the same time affect the petroleum viscosity 

reduction, can significantly increase the amount of 

oil extracted from the deposit (presently it is believed 

that on average one barrel of the extracted oil, two are 

still in the deposit) and it can enable economical exploitation 

of deposits that are thought to be depleted. 

Additional advantage of this type of detergents is biodegradability 

which enables its recognition as environment-friendly 

substances. 

Aerogel 

An unusually interesting group of nanostructures 

are aerogels which were actually discovered much 

earlier than people stated talking about nanotechnology 

(In 1931 [54]), but their structure was still undiscovered. 

Aerogels can be made of silica, aluminium 

oxide, wolfram, chrome or tin; carbon nanostructures 

can also be their matrix. Silica is the most often used


aerogel. It is obtained through a complete removal 

of silica gel which was obtained with the use of alcohol, 

usually ethanol (e.g. [55]). The gained material has 

an uncommonly low density, even 1 mg/mL, and its 

thermal conduction is lower than the air’s by about 

a half. It is caused by the fact that the free way of air 

particles (≈80 nm) is longer than aerogel pore diameter 

(≈30 nm) which does not make it easier to transfer 

the heat in the form of particle energy transport. These 

materials’ feature is unusually low thermal conduction 

and so they are perfect isolators which can be proved 

in Fig. 10. depicted below. 

An interesting use of aerogel merits is the formation 

of special coating which enables protection against 

corrosion of pipelines which transfer gas and liquids. 

The phenomenon of metal surface corrosion under 

traditional protection layer, which is unusually difficult 

to detect, is a serious problem. One of the existing solutions 

is the thermo-insulating coating NanosulateTM 

[57] (contains about 70% Hydro-NM-Oxide substance), 

which is described as nanotechnology product made 

of 30% acrylic resin with proper additives. According 

to the patent description [58], it is a composition of 

highly-porous material in the form of aerogel which is 

suspended in a proper acrylic resin with stabilizing additives 

which stick tightly to the surface and have anticorrosion 

properties. 

Summary 

Information presented above is only a segment selected 

from dynamically flourishing new field of knowledge, 

although, as already mentioned, the petroleum 

business is quite marginal to the main current of activities 

which concern nanostructures. However, it can be 

certainly stated that there are areas of work, in which 

the achievements of nanotechnology are unbelievably 

useful. The use of research techniques of surface materials 

with resolution up to 1 nm can give a vast array of 

valuable cognitive and functional information in fields 

of polyparticle structures and dispersion area. One of 

the interesting points is the research results of asphalt 

structures modified by polymer nanoparticles and 

their connection with road surface permanence, especially 

when using substances which have rigorously 

controlled sizes of dispersed particles which have different 

chemical characters. Essential is the opportunity 

of dispersion control in asphalt coating and connection 

of its structure with the properties which are obtained 

from functional asphalts. 

Equally interesting are problems connected with 

the impact of lubricant structures on their functional 

properties, which includes permanence and mor- 

Fig. 10. Flower isolated from a Bunsen burner flame by an 

aerogel layer [56] 

phology of the created multiphase system and its 

lubricity properties. Another problem is the use of 

nanostructural catalysts, especially those used for 

formation of alternative engine fuels of second generation 

with the use of the available waste materials. 

Knowing the nanostructure of the catalyst surface 

with the use of Oil and Gas Institute in the area 

of catalyst research can enable creating own competitive 

technologies of engine fuel gain acquisition 

from renewable sources. 


37

38 


Literature: 

1) 

2) 

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4) 

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8) 


In the Oil and Gas Institute a research into refining 

additives has been conducted for many years. Many of 

these kind of compounds are the products which contain 

structures, which whose size fits in the area of nanotechnology 

interest. There are substances which have 

non-stoichiometric metal content (overbased alkaline 

detergents – calcium and magnesium with varied organic 

radicals – sulphonic and carboxylic acids, phenols 

and sulphured phenols or non-classical salts of 

other metals). Also widely used are polymeric additives 

of the type of viscosity modifier or substances which 

change surface properties on the border of phases, e.g. 

anti-foaming additives (fuel/air) which enable water division 

and secretion (oil/water) or prevents from solid 

hydrocarbon precipitation (two hydrocarbon phases). 

The discussed achievements in nanotechnology 

make us hope that the growing knowledge of matter 

structures in nanoscale, especially in the area of catalysis 

and surface phenomena, also in hydrocarbon environment, 

allows successful problem solution connected 

with the development of biorenewable energy 

materials and formation of more environment-friendly 

technologies. 

Obviously, it is worth noting that there are potential 

threats [59] presented by new technologies, but I think 

that, while writing a paper, it is enough to remember 

to use in practice the ancient Roman rule: Quidquid 

agis, prudenter agas et respice finem – Whatever you do, 

do it cautiously, and look towards the end. It will let us 

avoid all possible dangers and maximally use all the 

merits of the new materials. 

The author is a research worker at the Oil and Gas 

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for the Oil Industry, JPT Online, Vol. 58 nr 11, http://www.spe.org/speapp/spe/jpt/2006/11/tech_tomorrow.htm. 

49) Argonne National Laboratory; Argonne Receives $1.88 Million from 

DOE to Study Practical Onboard Hydrogen Storage; Trans Forum 

2007 (vol. 7), nr 2, s. 2. 

50) Environment News Service (ENS); Designer `nanobatons` could help 

clean polluted groundwater and oil spills, published Jun. 3, 2008; 

http://www.environmental-expert.com/resultEachPressRelease. 

aspx?cid=4797&codi=32596&idproducttype=8&level=0. 

51) The University of Queensland; World first technology to revolutionise 

oil production, http://aibn.uq.edu.au/index.html?page=47858&pid 

=29811. 

52) Science Quick Picks; Pepfactants in Oil Production, http://pontotriplo. 

org/quickpicks/2006/06/pepfactants_in_.html. 

53) Amit Kumar; World first Technology to Revolutionize of Oil 

Production, IIChE-SC Newsletter, Episteme, vol.3, (2009); http://www. 

iitg.ernet.in/chemeng/photos/newsletter/newsletter_3.pdf. 

54) Kistler S.; Coherent expanded aerogels and jellies. Nature, 127(3211), 

May 1931. Według http://www.sps.aero/Key_ComSpace_Articles/ 

TSA-009_White_Paper_Silica_Aerogels.pdf. 

55) Griffin J.S.; Modeling of Ethanol-Silica Alcogel Drying Using 

Supercritical Carbon Dioxide, School of Engineering, Tufts University, 

Medford, Massachusetts 2010 r. http://repository01.lib.tufts. 

edu:8080/fedora/get/tufts:UA005.028.021.00001/bdef:TuftsPDF/ 

getPDF. 

56) http://en.wikipedia.org/wiki/File:Aerogelflower_filtered.jpg. 

57) Industrial Nanotech, Inc.; Nanosulate, http://www.nansulate.com/ 

nansulate_industrial_coatings.htm. 

58) US Patent 7 144 522:2006; Composition for Thermal Insulating Layer. 

59) 

Ed. Hunt G., Mehta M.; Nanotechnology – Risk, Ethics and Law 

(Science in Society Series), University of Oxford, Earthscan, 2006 r. 


39

40 

When the demonstrations reached Egypt, they 

brought anxiety about security in the Suez Canal, 

which is the transition point for about 2% of global 

oil transport, and also about continuity of supplies 

through the Suez-Mediterranean pipeline which transports 

about 2 m. oil barrels daily. However, the anxiety 

increased when the confl ict moved to Libya which 

has the largest documented petroleum reserves on 

the African continent: according to the International 

Energy Agency they amount to approx. 41,5 bn of oil 

barrels. As a result of the riot, the country – being the 

third greatest petroleum exporter in Africa – in only a 

few months reduced its production from 1.57 m. to 

0.24 m. barrels daily. 

In addition to the exacerbating situation in North 

Africa, the prices of oil began rocketing, reaching the 

highest level since the fi nancial crisis broke out in 2008. 

Although the oil prices have already been rising since 

the beginning of the year 2009, which was mainly due 

to growing demand from the rising economies, the 

growth that we can observe since the beginning of 

February 2011 is characterized by several times higher 

dynamics. 



Restricted oil production in the African countries and consequences for the European and Polish recipients 

Social revolutions in Africa: can 

another worldwide oil crisis be 

expected? 

MARIA WOŹNY 

At the beginning of the year 2011, to express their increasing discontent 

about deteriorating economic situation and the regime rule, the inhabitants 

of the North African countries began mass demonstrations. The attempts 

made by the local governments to suppress the rebellion brought 

about further exacerbation of the situation. Initially, a wave of protests 

rolled across Tunisia, then Egypt, to reach Libya in the end. The world 

closely followed all the events – not only for their political and social overtone, 

but also on account of the consequences for global economy. 

Revolution or profi teering? 

Libya is the third greatest producer of oil in Africa 

and has the largest deposits on the continent, but its 

participation in the world production of the fuel is not 

signifi cant – according to IEA estimates it is approx. 2%. 

A question arises then: to what extent does such considerable 

increase in oil price have fundamental justifi - 

cation and does it result from reduced oil production 

in the region or maybe it is a cover for the desire to 

make a profi t? The question is whether the rebellious 

moods will move to such countries as Saudi Arabia or 

Iran where already in February this year the fi rst signs 

of social discontent could be observed. In 2010 the 

countries` output was respectively about 20% and 9% 

of the world production of oil. Potential riots bring the 

risk of stoppage or reduced supplies – either of which 

would signifi cantly diminish the world oil supplies and 

increase the prices to unprecedented levels. Therefore, 

presumably, considerable rise in oil prices is the consequence 

of the fact that investors are already discounting 

some of the risk resulting from the fear about secure 

oil production in the largest producing companies.


Production of crude oil in OPEC countries 

[K b/d] 

2009 2010 

3 rd quarter 

2010 

4 th quarter 

2010 

1 st quarter 

2011 

Algeria 1 270 1 261 1 255 1 258 1 265 1 265 1 266 1 260 (6) 

Angola 1 786 1 792 1 749 1 661 1 671 1 655 1 710 1 598 (112) 

Ecuador 477 475 475 480 484 485 482 483 0 

Iran 3 725 3 707 3 682 3 673 3 666 3 663 3 660 3 666 6 

Iraq 2 422 2 399 2 355 2 423 2 647 2 643 2 632 2 655 24 

Kuwait 2 263 2 301 2 313 2 310 2 377 2 358 2 431 2 454 23 

Libya 1 557 1 560 1 567 1 569 1 097 1 360 375 240 (135) 

Nigeria 1 812 1 063 2 115 2 175 2 088 2 084 1 991 2 095 104 

Qatar 781 803 805 805 808 807 811 816 6 

Saudi Arabia 8 051 8 273 8 370 8 376 8 779 8 920 8 755 8 885 131 

United Arab Emirates 2 256 2 306 2 318 2 315 2 439 2 422 2 494 2 521 26 

Wenezuela 2 309 2 286 2 285 2 275 2 318 2 289 2 310 2 312 2 

OPEC total 28 708 28 226 29 289 29 320 29 639 29 950 28 916 28 985 69 

Source: OPEC, Monthly oil market report, May 2011 

$140 

$120 

$100 

$80 

$60 

$40 

$20 

$0 

May 1987 

Jan 1988 

Jan 1989 

Feb. 

2011 

March 

2011 

Comparison of nominal and real crude oil prices in April 2011 

[USD] 

Source: Energy Information Administration and Bureau of Labor Statistics 

Jan 1990 

Jan 1991 

Jan 1992 

Jan 1993 

Jan 1994 

Jan 1995 

Jan 1996 

Jan 1997 

Jan 1998 

Jan 1999 

Jan 2000 

Jan 2001 

Jan 2002 

Jan 2003 

Nominal Prices 

Real Prices (April 2011; prices in USD) 

Jan 2004 

Jan 2005 

Jan 2006 

Jan 2007 

Jan 2008 

April 

2011 

April/ 

March 

2011 


Jan 2009 

Jan 2010 

Jan 2011 

41

42 

The activities of the local governments indicate 

that the risk of rebellions in the region should be 

treated seriously. King Abdullah, the Saudi Arabia 

ruler, in order to temper the social disturbances, announced 

he would increase the public expenses by 

a substantial sum of 129 bn USD, which corresponds 

to half of the proceeds from export of the Saudi oil 

in 2010. Kuwait, adjacent to Arabia, makes attempts 

to calm the tense atmosphere by promising onetime 

payments of about 4 thousand USD, and also 

annual financing of the basic food articles for all the 

citizens. 

Dependent on Libya 

Although the Libyan oil does not play an important 

role in the global oil market, it is an essential source 

of supplies for the European countries, including those 

in the Mediterranean basin. To quote IEA, in 2010 as 

much as 85% of the Libyan oil reached the European 

market, mainly Italy, France, Germany and Spain. 



According to IEA, the countries with greatest dependence 

from the Libyan oil are Ireland, Italy, Austria 

and France. Last year in Ireland almost one-fourth of 

the demand for the fuel was covered by the Libyan 

supplies, while Italy imported the greatest volumes 

(over 30% of the Libyan export of oil in 2010) and it is 

just these countries that are the most harmed parties 

on account of interrupted supplies. 

The Italian fuel concern ENI has been engaged for 

over 40 years in extraction of oil from the Libyan deposits, 

which – as the company claims – in 2010 corresponded 

to 14% of its total production. Other concerns 

seriously involved in the Libyan oil extraction are 

the Austrian OMV and Spanish Repsol which obtained 

respectively 12% and 3.6% of total fuel supplies from 

the Libyan oil fields. Even though BP, Shell, Total and 

Statoil were also engaged in extraction of the Libyan 

oil, the scale of their participation was much smaller. 

The wave of conflicts in North Africa affected also 

the activity of the Polish Petroleum and Gas Mining 

Company [PGNiG] which holds concessions for hydrocarbons 

exploration in Egypt and Libya. When the conflict 

began, the Polish concern was forced to evacuate 

Import of oil (including condensate and NGL) from Libya [K b/d] 

2007 2008 2009 2010 

% of the whole 

crude oil import 

in 2010 

Australia - - 1 11 2,3% 

Austria 35 17 23 31 21,2% 

France 105 141 131 205 15,7% 

Germany 220 210 167 144 7,7% 

Greece 49 63 47 63 14,6% 

Ireland 3 9 10 14 23,3% 

Italy 538 504 423 376 22,0% 

Netherlands 43 40 27 31 2,3% 

Portugal 36 29 19 27 11,1% 

Spain 99 120 102 136 12,1% 

Switzerland 52 72 28 17 18,7% 

Great Britain 51 81 71 95 8,5% 

USA 122 105 78 51 0,5% 

OECD total 1 376 1 396 1 137 1 205 5,1% 

Source: International Energy Agency


its workers from its North-African divisions. It is also diffi 

cult to estimate when the situation would become 

stable enough to let PGNiG SA resume their work, however 

the concern informs that the operations in the 

area of the Egyptian concession may even start already 

by the end of this summer. On account of the fact that 

the situation in Libya arouses great fears, it seems that 

the delay in prospecting works may last there longer. 

Although the OPEC countries undertook to cover 

the defi ciency in petroleum supplies resulting from 

disturbed Libyan oil supplies, this does not satisfactorily 

solve the problem of the European refi neries whose 

technological potential is adapted to processing fuel 

originating from Libya, as it contains little sulphur. The 

Saudi fuel is heavy oil whose processing in the refi neries 

which traditionally process the Libyan oil reduces 

the output of high-margin products, reducing by the 

same the refi nery`s profi tability. In this situation the 

refi neries are forced to buy the light oil in spot markets 

where sweet varieties of the fuel – like the Nigerian 

Bonny Light, Algerian Saharan Blend or Azeri BTC 

Blend – are reported to bring record-breaking spread 

over the Brent oil. On the other hand, refi neries are not 

Although the Libyan oil does not 

play an important role in the global 

oil market, it is an essential 

source of supplies for the European 

countries, including those in 

the Mediterranean basin. To quote 

IEA, in 2010 as much as 85% of the 

Libyan oil reached the European 

market, mainly Italy, France, Germany 

and Spain. 

able to offl oad the costs of expensive fuel to recipients, 

which resulted in the reduced margin on production 

of petrol which, according to Reuters, fell from 17 USD 

per barrel in April 2011 to 3 USD by the end of May 

this year. As a result, since the riots broke out in North 

Africa, the European refi neries maintain their throughputs 

at a low level. 

% % 

95 

95 

90 

85 

80 

75 

Refi nery utilization rates, 2010-2011 

Source: OPEC, Monthly oil market report, May 2011 

70 

70 

Nov 10 Dec 10 Jan 11 Feb 11 March 11 Apr 11 

US EU-16 Japan Singapur 

90 

85 

80 

75 


43

44 

At first, many concerns tried to wait till the end of the 

slump in the economy, using the time for seasonal renovation 

work. However, when it was obvious that unfavourable 

conditions would last longer, the refineries announced 

that they would maintain the production capacity at about 

80%. Italy experienced the strongest fall in fuel production: 

in March, the volume of produced petrol fell by 9.1%, 

and diesel oil by 3.8%, year-over-year (after: Reuters). The 

management board of the ENI concern, being in a critical 

situation, were seeking all possible solutions in order to 

ensure continuity of fuel supplies at attractive prices. On 

4 April, 2011 the concern announced that they established 

contact with the Libyan opposition to be able to resume 

the import of oil from Sarir – the greatest oil field in Libya. 

In response to that move, the Libyan leader Muammar al- 

Kaddafi decided to implement the “Zero Hedge” strategy 

which consisted in destruction of the oil infrastructure 

so that it could not serve the opposition. As a result, on 

4 th and 7 th April the oil fields in Mesla and Sarir were destroyed. 

The “Zero Hedge” strategy applied by Kaddafi will 

make it impossible to efficiently resume the oil production 

in Libya after the fighting is over, which means that the adverse 

situation for the European refineries may continue 

for a long time. 

Poland does not import oil from Libya, so riots in North 

Africa do not threaten continuity 

of fuel supplies to 

the Polish refineries. However, 

the situation in Africa 

and rising prices of oil 

translate into high oil prices 

for the Polish entities 

as well, and indirectly the 

impact of the rebellion on 

the African continent is 

also felt by the Polish drivers. 

Higher prices of fuel in 

the global market mean 

higher rating in the world 

fuel stock market, and 

these in turn contribute to 

increased product prices 

in the Polish refineries. As 

a result, for many weeks 

already, the prices in the 

fuel retail market remain 

above the psychological 

barrier of 5 PLN per liter. 

It is still difficult to 

forecast when the oil 

prices will come back to 

the level from before the 

Libyan conflict. A lot will 

depend on the action undertaken 

by the Libyan 



authorities after the fighting is over – particularly on the 

rate of repair works in the devastated oil infrastructure and 

initiatives undertaken in order to encourage the trust of 

foreign investors to resume extraction from the Libyan oil 

fields. It should be remembered that the OPEC countries 

are interested in high fuel prices, as – according to forecasts 

by International Energy Agency – they are supposed 

to earn on the export of oil in 2011 the record sum of a 

billion dollars in total. Moreover, if the social tensions persist, 

the countries will also have to allot substantial sums 

as financial bonus for the population, and this will require 

maintaining the proceeds from oil export at a high level. 

The announcement in June 2011 that there is no OPEC decision 

on increasing the volume of oil extraction seems to 

confirm the statement. 

Maintaining the oil prices at such a high level for a 

long time may weaken the global economic growth and 

this effect may be enhanced by the fact that following the 

higher oil prices, the prices of natural gas, whose supplies 

to many European countries are indexed on the basis of 

oil prices, will rise as well. 

Maria Wozny is the Consultant in the Business 


Fig. 1. The main oil and gas-bearing areas and oil and gas pipelines in North Africa. Source: 

Petroleum Economist

46 

Drilling 

Brenntag Polska consists of ten business sectors 

and one of them is Oil and Gas. The off er of our 

company comprises all possible products and specialist 

chemical services. In order to seize the opportunity 

it is enough to contact us. 

As part of rendered services we put at your disposal 

15 warehouses located in the territory of all Poland 

and our team which will conduct a reliable technical 

expertise in each of the fi elds mentioned. Brenntag 

and its Oil and Gas sector is able to provide you with 

all possible chemical solutions, regardless of whether 

they are products for making drilling fl uids, liquids for 

heating and cooling installations or chemicals used in 

extraction. 



Brenntag – the parent company of the group that Brenntag Polska 

LLC belongs to – is one of the largest players in the world market 

of chemicals distribution. Consolidated spending power in respect 

of raw material supplies helps the Brenntag company off er their 

clients products and services at exceptionally attractive prices. 

Owing to the fact that we are not obliged to use the 

services of one supplier, our company may conduct continuous 

analysis of world markets with reference to both 

tested and the most innovative achievements in technology. 

As opposed to competitive companies which can cooperate 

exclusively with their own factories of half-fi nished 

chemical products, we combine the merits of all our suppliers, 

by the same creating perfect products. 

Brenntag Polska meets the top standards of quality, 

safety and environment protection that are obligatory in 

the oil and gas industry sector. 

The services rendered by Brenntag comprise also technical 

support. The technical assistance staff are at your disposal 

when needed and they will help you in respect of 

product application and solving problems connected with 

drilling and extraction. The technical team are your constant 

disposal as additional support. Brenntag also possess 

modern research and development department and analytical 

laboratory. Our broad range of agents for making 

drilling fl uids includes e.g.: 

Thickeners 

Effective control of rheological parameters is the basic 

task put to thickeners applied in drilling. The chief goal in 

application of thickeners, both natural and synthetic, is to 

give them appropriate viscosity and yield point, owing to 

which the drilling fluid fulfills its basic function, i.e. effective 

carrying out drill cuttings. 

Brenntag Polska have in their off er a wide range of thick- 

eners used for drilling fl uids. 

• 

• 

• 

• 

Bentonit API 

CMC HV 

CMC LV 

PAC LV


• Xanthan gum 

• Xanthan gum TNO (with higher termal resistance) 

• Acrylic polymers 

• Guar gum 

Regulation of filtration rate 

Excessive filtration values of the drilling fluid has adverse 

action on the drilling process, because it may damage 

the production zone and cause destabilization of the 

borehole wall. In addition, too thick filter cake depositing 

on the walls causes various drilling problems. Brenntag Polska 

offer highly effective protective colloids, starch-based 

agents (resistant to temperatures even up to 150°C) and 

synthetic polymers (resistant to temperatures to 210°C). 

• CMC LV 

• PAC LV 

• Synthetic polymers HTHP 

Weighting materials 

The specific gravity of the drilling fluid is the basic parameter 

which allows effective control of hydrostatic pressure 

in the borehole. Proper balancing of the deposit pressure 

by the weight of the drilling fluid column permits 

to conduct safe drilling works. Brenntag Polska have on 

their offer drilling barite (not processed in flotation) which 

meets the API standards. 

Sand seals 

Loss of the drilling fluid is one of the most serious drilling 

problems encountered during drilling works. They 

pose a threat to the safety of the borehole and they considerably 

increase the costs related to the drilling fluid. 

Brenntag Polska offer a series of economical products of 

mineral and organic origin for effective loss prevention. 

Corrosion inhibitors 

In oil fields there is more than one type of corrosion: 

electro-chemical corrosion (drilling fluids are usually 

water solutions of salt, in such systems electro-chemical 

corrosion can easily occur), corrosion resulting from 

the presence of oxygen, dissolved hydrogen sulfide, 

dissolved carbon dioxide. Effects of corrosive processes, 

specially pitting corrosion, may be the cause of failure 

resulting from damaged pipe in the site of deep corrosion 

pit. Equally dangerous is intergranular corrosion 

which leads to heavy loss of strength properties of metal 

elements, which may result in a failure. High quality 

corrosion inhibitors help considerably to prolong 

the life of the drilling equipment, and first of all they 

prevent failures. Specially selected inhibitors will form 

a permanent protective film on the pipe surface, preventing 

the pitting corrosion and causing passivation 

of those already existing. Brenntag Polska offer many 

corrosion inhibitors, including those used in drilling. 

Dispersants 

Excessive volumes of solid phase in the drilling fluid 

as well as its potential contamination may lead to 

considerable increase in viscosity, which has an adverse 

effect on the parameters of the drilling fluid and in 

extreme situations may completely block its flow. Dispersing 

agents are used to liquefy (lower the viscosity) 

of the drilling fluid. Brenntag Polska have on offer plasticizers 

based on lignosulphonates and extremely effective 

synthetic acrylic polymers. 

Inhibitors of clay swelling 

Hydration, swelling and dispersion of clay-shale rock, 

which results in the loss of stability of the borehole wall 

– the symptoms of which are rock crumbling, caverning or 


47

48 

tightening the borehole. Such technical condition of the 

borehole is the cause of many drilling failures and requires 

drilling fluids of specific inhibitory properties. Brenntag 

Polska have on offer products used as inhibitors of swelling, 

such as PHPA anion and cation polymers. We also possess 

extremely effective inhibitors of clay swelling, based 

on polyglycols (Cloud point glycols) and polyamines. 

Biocides 

A biocidal product is used for destruction, repelling, 

neutralization and prevention of action or controlling in 

any other way of harmful organisms by chemical or biological 

action. A great variety of substances of organic 

origin added to the drilling fluid favours the propagation 

of micro-organisms, which leads to drilling fluid fermentation. 

Brenntag Polska have on offer a wide range 

of biocides of broad spectrum of action, e.g. 

• 

• 

• 

Grotan BK 

Grotan OK 

Grotan WS 

Defoamers 

The presence of surfactants in drilling fluids and 

other substances may cause foaming, which has an adverse 

effect on the drilling fluid parameters (e.g. lowering 

the specific gravity) and results in many drilling 

problems. Brenntag Polska offer skimmers based on alcohols 

and silicone anti-foaming agents which act both 

as foaming inhibitors and agents which are fighting the 

foam already existing. 

Surfactants: 

Brenntag Polska present a wide range of surfactants 

offered by the largest manufacturers in the European 

market. We have in our offer all types of surfactants, including 

a series of detergents used in various drilling 

applications. 

Hydraulic fracturing 

Modern hydraulic fracturing is a fully controlled process 

which may eat up even 25% of the costs of performing 

a borehole. This technique consists in pumping liquids 

of regulated viscosity which contain activators, organic 



solvents, antioxidants, enzymes and polymers. Ceramic or 

metal materials are used as proppants. Due to hydraulic 

fracturing in bituminous shale precise, concentric fracture 

zones are obtained with radius of even 900 m (in sandstone 

up to 200 m). Brenntag Polska have on offer a series of materials 

used in hydraulic fracturing, i.e. thickeners, activators, 

organic solvents, biocides and high quality proppants (ceramic 

proppant from reputable Saint-Globain). 

Hydrogen sulfide and 

oxygen scavengers 

The presence of hydrogen sulfide in the drilling fluid is 

mainly caused by its occurrence in the deposit along with 

gas or oil. Apart from danger of toxic action on people, 

hydrogen sulfide contributes to corrosion of the drilling 

strings and casing string. Dissolved oxygen contained in 

the drilling fluid favours the occurrence of corrosion foci. In 

the offer of Brenntag Polska you will find hydrogen sulfide 

and oxygen scavengers. 

• 

• 

• 

Zinc oxide 

Zinc carbonate 

T-4402E (oxygen scavenger) 

Functional additives 

Brenntag Polska as a leading representative of chemicals 

in the world have on offer an extensive range of chemical 

substances commonly used in drilling. From among 

them we can offer: 

• Citric acid 

• Sodium carbonate 

• Potassium carbonate 

• Sodium bicarbonate 

• Sodium hydroxide 

• Potassium hydroxide 

• Potassium chloride 

• Sodium chloride 

• Calcium chloride 

• Monoethylene glycol, etc. 

• Potassium acetate 

• Granulated bentonite (for hydro-isolation) 

• 

Disodium pyrophosphate (SAPP) 

Kontakt: 

Brenntag Polska Sp. z o.o. 

ul. J. Bema 21 

47-224 Kedzierzyn-Kozle 

e-mail: ropaigaz@brenntag.pl


125.0 

63.5 

22.8 

36.8 

109.3 

33.9 

The main directions 

in oil trade in 2010 

[m ton] 

36.9 

83.8 

28.9 

86.0 

45.7 

83.0 

43.7 

116.7 

USA 

Canada 

Mexico 

South and Central America 

Europe and Eurasia 

Middle East 

Africa 

Asia and Pacic 

21.3 

24.1 

295.2 

Source: BP Statistical Review of World Energy 2011 

179.9 

118.4 

45.4 

129.6 

28.6 

227.1 

37.6 

33.3 

39.5 

20.0 

28.8 


49

0 

800 

700 

600 

500 

400 

300 

200 

100 

0 

45.2 


Oil: Proved reserves 

[in bln barrels] by the end of 2010 

74.3 

132.1 

139.7 

Asia and Pacifi c ........................................................ 45.2 

North America ......................................................... 74.3 

Africa ............................................................................132.1 

Europe and Eurasia .............................................139.7 

South and Central America .......................... 239.4 

Middle East ..............................................................752.5 



239.4 

752.5


Distribution of confi rmed oil resources in 1990 

– 1003.2 bln barrels total 






Asia and Pacifi c ...................................................3.6% 

North America ....................................................9.6% 

South and Central America .........................7.1% 

Africa ........................................................................5.9% 

Europe and Eurasia ..........................................8.1% 

Middle East ........................................................65.7% 


North America ....................................................6.2% 


Africa ........................................................................8.5% 

Europe and Eurasia ..........................................9.8% 

Middle East ........................................................63.1% 


North America ....................................................5.4% 

South and Central America ......................17.3% 

Africa ........................................................................9.5% 

Europe and Eurasia .......................................10.1% 

Middle East ........................................................54.4% 


1

GAS: 

exploration, 

distribution, sales

4 

Grupa LOTOS and PERN are building caverns 

There is a chance for increased 

security in the energy sector 

in Poland 

Grupa LOTOS and PERN ”Przyjaźń” are joining forces. Their goal 

is construction of underground storage facilities (caverns) for 

storage of crude oil and fuels. Salt deposits will be used as storage 

reservoir for raw materials, after pumping out salt. 

In mid-June, both companies signed an a letter of 

intent concerning the construction of caverns in 

the Pomerania. This investment is to be executed in 

two stages by the year 2020. At fi rst, storage facilities 

up to 7 million m3 capacity will be built. In the future, if 

there is demand in the market, their capacity may increase 

up to 15-20 million m3 . 

First of all – security 

A list of advantages of underground storage reservoirs 

is long. The experience of the countries which decided 

on this method of storing hydrocarbons as the 

fi rst showed that this kind of reservoirs, in comparison 

with traditional storage methods, facilitate the construction 

of reservoirs of large capacity on a smaller 

surface, on account of land infrastructure. Storage reservoirs 

of this type are also completely hermetic. 

Aleksander Zawisza, an independent expert in 

the fuel market, enumerates the remaining merits of 

such investment: caverns are less exposed to a potential 

explosion, terrorist attacks or damage in case 

of the war. The raw materials are safe, even in case of 

bombing. 


– In order that we could jointly build security in the 

Polish energy sector, we hope that the project will be 

joint by other companies in the country – says Paweł 

Olechnowicz, the CEO of Grupa LOTOS. 

The Chairman of PERN nods in agreement. 

– We treat the investment mainly as a method for increased 

energy security of Poland, though we also discern 

the commercial aspect resulting from the chance 

of availability of substantial storage capacities – claims 

Robert Soszyński. 

Taking care of security in the Polish energy sector is 

the key necessity for the Department of Oil and Gas of 

the Ministry of Economy. 

– The benefi ts from possessing strategic oil reservoirs 

are obvious. Such reservoirs are primary security 

in case of breach of oil and natural gas deliveries, they 

provide security related to energy and in the economic, 

increase political stability in the region and the world. 

The possibility of storing a dozen or so million tons 

of oil means the achievement of actual diversifi cation 

of the sources of supplies. Potential energy blackmail 

becomes considerably less dangerous in the situation 

– states Iwona Dżygała from the department press 

offi ce. 

A specialist from the Ministry of Economy emphasizes 

that storing such great volumes of oil should also

The refinery of Grupa LOTOS in Gdańsk 

stabilize the price of the raw material. Failures, including 

those caused by terrorist attacks, pose a threat to 

the oil pipelines. The most dangerous is the breach 

in continuity of supplies. This continuity may be provided 

by storage reservoirs located in underground 

caverns. 

– The effects of potentially hostile breach of supplies 

will be minimized in this way – remarks Iwona 

Dżygała. 

The experts add that the joint investment of Grupa 

LOTOS and PERN may enhance competitiveness in the 

national fuel market. The underground reservoirs may 

be used by companies which do not have their own 

storage infrastructure in Poland. 

The French already know it… 

Very important is the fact that Grupa LOTOS and 

PERN are progressing along a path marked out by several 

countries in Europe and in the world – such storage 

reservoirs operate (often for many years) in countries 

like: France, Great Britain, Germany or USA. Let 

us look more closely at the solutions used in Europe. 

France comes first. According to the economy department 

data, there are 15 bases with underground stor- 

age reservoirs, out of which three are bases which 

possess salt caverns (Manosque, Etrez, Tersanne). The 

following materials are stored there: natural gas, crude 

oil and fuels. The first storage reservoir in France was 

built in Terasanne, with estimated depth of 1400 to 

1500 m. The main reserve storage is the one in salt 

caverns in Manosque (southern France, about 100 km 

from the Mediterranean) of total capacity 6 million m 3 . 

This reservoir is located in the area of the national park, 

which in an essential manner testifies to the pro-ecological 

aspect of this kind of storage reservoirs. It is 

worth noting that operators of caverns built in the 

area of salt sedimentation must find a method which 

is safe for the environment in order to get rid of the 

brine washed out from the salt deposits in which oil 

and gas are to be stored. 

The Manosque reservoir is connected by a pipeline 

system of about 100 km with the sea ports and refineries 

in Lavera (the site of sending and receiving products). 

As far as the water drawing sites and brine transportation 

are concerned – the Manosque reservoir is 

connected by a pipeline system with an impounding 

reservoir in Villeneuve, from where water for washing 

was taken, and with a salty lake Lavalduc, from which 

the brine for driving oil and fuel from caverns is taken 

and the brine after leaching the caverns and filling 

them with the product is dumped. 

The Polish PeTroleum and naTural Gas markeT 2011

…and Germany 

For many years, numerous underground reservoirs 

have also been operated in Germany, where EBV agency 

deals with the strategic reserves of oil and its products. 

It owns four large underground reservoirs in salt 

deposits (salt intrusions) on the North Sea. They are located 

in Heide and Sottorf near Hamburg, Üstringen 

not far from Wilhelmshaven, and in Lesum in the vicinity 

of Bremen. A large German strategic oil reservoir 

was Etzel, which now belongs to IVG. At present, some 

of the caverns were converted to natural gas reservoirs, 

and those remaining serve as subordinate oil and fuels 

reservoirs (capacity of about 8 million tonnes) for private 

oil companies. 

An interesting example of strategic and operational 

oil and fuel reservoir is Blexen. This facility is situated 

in diapirs near the town of Nordenham on the North 

Sea. 

While pumping the product, the brine obtained 

from the salt caverns is dumped to the Wezera river 

a few kilometers from its estuary. The products are 

pumped from the reservoir by means of water from 

the Wezera. They may be directed to the reservoir or 

taken from it from the tanker or loaded on it only when 

it moors on the pier on the Wezera. 

It is cheaper in this way 

We cannot disregard the costs of investments 

planned by Grupa LOTOS and PERN. The latter, which 

specializes in construction of reservoirs, estimates that 

in the first phase the construction of underground reservoirs 

will cost even 2 bn PLN. Both companies consider 

the application for subsidies from international 

institutions: EBOR and EBI. 

– In accordance with earlier announcements, the 

costs of reservoir construction and indispensable logistic 

infrastructure will be partly covered from the 

European Union funds. What is important is that 

Grupa LOTOS will not be engaged in financing the 

project. – We are preparing the structure of financing 

in such a way that external companies invest in 

execution of the whole undertaking – adds the CEO, 

Olechnowicz. 

Experts from the Oil and Gas Department of Ministry 

of Economy point out that construction of underground 

reservoirs is cheaper than in case of traditional 

reservoirs on the land. 

– Their preparation is connected with smaller consumption 

of steel and other construction materials 

and it lowers the investment outlays – says Iwona 

Dżygała. 


7

Przedsiębiorstwo Polish Oil Pipeline Eksploatacji Operation 

Rurociągów Company Naftowych “Przyjazn” PLC 

„Przyjaźń” S.A. 

The basic task of the Company is operation of pipeline 

systems transporting the Russian crude oil to the 

largest fuel producers in Poland and Germany. The rendering 

of this service is facilitated by two lines of the 

“Przyjazn” pipeline running from Adamowo (located 

near the Polish border with Belarus) to Płock, and then 

to Schwedt in Germany. 

An important part in supplying the Polish refineries 

with crude oil is contributed by the Pomeranian 

Pipeline connecting Płock and Gdansk, which enables 

transportation of the fuel in both directions. The oil 

may be pumped to the Gdansk Naftoport, and then it 

is exported by tankers. 

This pipeline provides the opportunity to supply 

the Polish and German refineries with fuel originating 

from other directions than “Przyjazn” pipeline. As a result, 

this denotes starting deliveries from the sea, their 

trans-shipment in Naftoport and pumping the oil in 

the direction of Plock. 

Besides the pipeline system which transports raw 

material, PERN “Przyjazn” PLC also owns the product 

pipeline system used for transporting liquid fuels 

produced by refineries. This system branches in 

radial lines from Płock, towards Warsaw, Poznan and 

Czestochowa. 

An exceptionally important service for the energy 

security of the country rendered by PERN “Przyjazn” 

PLC is crude oil storage. The company owns three 

storage bases in Adamowo, Płock and Gdansk, and 

they are equipped with containers of capacity from 

32 K to 100 K m3 . Total capacity of the PERN “Przyjazn” 

PLC crude oil containers is nearly 3.0 m m3 Podstawowym zadaniem Spółki jest eksploatacja sieci 

rurociągów transportujących rosyjską ropę naftową dla 

największych producentów paliw 

w Polsce oraz w Niemczech. Realizację tej usługi umożliwiają 

dwie nitki rurociągu „Przyjaźń” biegnące z Adamowa 

(położonego przy granicy Polski 

z Białorusią) do Płocka, a następnie Schwedt w Niemczech. 

Dużą rolę w zaopatrzeniu polskich rafinerii w ropę naftową 

odgrywa również Rurociąg Pomorski łączący Płock z 

Gdańskiem, który umożliwia transport surowca w obu 

kierunkach. Ropa naftowa może być w tym wypadku 

tłoczona do gdańskiego Naftoportu, skąd tankowcami jest 

wysyłana na eksport. 

Rurociąg ten daje także możliwość zaopatrywania polskich 

i niemieckich rafinerii w surowiec pochodzący z innych 

kierunków niż rurociąg „Przyjaźń”. W konsekwencji oznacza 

to rozpoczęcie tzw. dostaw „z morza”, ich przeładunek w 

Naftoporcie oraz tłoczenie surowca w kierunku Płocka. 

Oprócz sieci rurociągów przesyłających ropę naftową, PERN 

„Przyjaźń” S.A. posiada także sieć rurociągów produktowych, 

wykorzystywanych do transportu paliw płynnych 

wyprodukowanych przez rafinerie. Sieć ta rozchodzi się 

promieniście z Płocka, w kierunku Warszawy, Poznania oraz 

Częstochowy. 

Niezwykle ważną - dla bezpieczeństwa energetycznego 

kraju - usługą realizowaną przez PERN „Przyjaźń” S.A. jest 

magazynowanie ropy naftowej. 

Spółka posiada trzy bazy magazynowe: w Adamowie, Płocku 

oraz 

w Gdańsku, wyposażone w zbiorniki o pojemności . od 32 tys. 

do 100 tys. Some m3. of Łączna that capacity pojemność ensures zbiorników continuous ropy naftowej techno- 

PERN logical „Przyjaźń” operations S.A. wynosi associated blisko 3,0 with mln transporting m3. crude 

Część oil to tej refineries. pojemności The remaining zapewnia containers ciągłość are operacji used by 

technologicznych the Company związanych for commercial z transportem purposes, ropy e.g. by naftowej render- 

do rafinerii. 

ing storage 

Pozostałe 

services: 

zbiorniki 

for the 

Spółka 

national 

wykorzystuje 

and obligatory 

do celów 

reserves 

or operational goals of particular clients. 

komercyjnych, świadcząc usługi magazynowania: zapasów 

The Capital Group PERN “Przyjazn” consists of: 

państwowych i obowiązkowych czy też operacyjnych 

OLPP LLC, Naftoport LLC, CDRiA LLC, Międzynarodowe 

poszczególnych klientów. 

Przedsiębiorstwo Rurociągowe Sarmatia LLC, SIARKO- 

W skład 

POL 

Grupy 

Gdansk 

Kapitałowej 

PLC and 

PERN 

PETROMOR 

„Przyjaźń” 

LLC. 

wchodzą: OLPP Sp. 

z o.o., Naftoport Sp. z o.o., CDRiA Sp. z o.o., Międzynarodowe 

Przedsiębiorstwo Rurociągowe Sarmatia Sp. z o.o. SIARKOPOL 

Gdańsk S.A. oraz PETROMOR Sp. z o.o. 

Przedsiębiorstwo Eksploatacji Rurociągów Naftowych 

Przedsiębiorstwo Eksploatacji „Przyjaźń” Rurociągów S.A. Naftowych 

„Przyjaźń” ul. Wyszogrodzka S.A. 133 

ul. Wyszogrodzka 09-410 133, Płock 09-410 Płock 

tel: tel: (024) (024) 266 23 266 00 23 00, fax: (024) e-mail: 266 zarzad@pern.com.pl 

22 03 

e-mail: fax: (024) zarzad@pern.com.pl, 266 22 03 

www.pern.com.pl

60 

These structures have low or very low permeability, 

and are formed by unconventional rocks accumulating 

hydrocarbons. The unconventional hydrocarbon 

resources were fi rst defi ned in the 1970s. The term was 

introduced to describe resources associated with formations 

having an in-situ matrix permeability to gas 

of 0.1 mD or less. This fi rst defi nition had a ‘political’ 

character because in some countries, 

companies which produced 

from such reserves were eligible 

for government subsidies directed 

at unconventional energy producers. 

The currently used defi nition of 

unconventional resources is slightly 

diff erent, and is described more in 

engineering terms. It is based on a 

number of technical and economic 

parameters. The general defi nition 

of unconventional resources specifi 

es that extraction of gas on an 

economic scale is impossible without 

horizontal or multilateral wells, 

or without performing a series of 

stimulation operations in the wells. 

According to this defi nition, the hydrocarbon 

resources accumulated 

in tight sand and shale reservoirs 

should be classifi ed as unconven- 


GAS: exploration, distribution, sales 

Accessing shale gas reserves 

An unconventional approach to 

unconventional resources 

DR PIOTR KASZA 

Over thirty years ago, a distinct group of hydrocarbon resources was 

defi ned and characterised; these reserves were described as unconventional. 

The name indicates that the group includes oil and natural 

gas deposits which are accumulated within geological structures other 

than those from which most production has been carried out so far. 

Fig. 1. Diagram of natural gas resources 

tional resources. In a very general way, they can be 

presented using a diagram of natural gas resources 

(Fig. 1) [6]. These reservoirs are associated with a matrix 

of very low permeability which in some cases is in the 

nano-darcy range. 

For the stimulation operations to be eff ective in 

such formations, the presence of a network of con-


nected pores and micro-fractures, which would support 

the fluid flow within the reservoir after its stimulation, 

is necessary. 

According to the data from the literature [4], the 

shale reserves in which commercial extraction is carried 

out (Barnett, Rhinestreet) are associated with porosity 

coefficient values ranging between 0.7% and 6%, 

while the permeability coefficient values are expressed 

in nano-darcy. The matrix of these shales mainly comprises 

non-clay minerals, predominantly quartz (60- 

70%), with a significant content of clay mineral, mainly 

illite (30-40%). 

The graphic presentation of natural gas resources 

in the world indicates that the unconventional gas resources 

(including tight and shale gas) are much larger 

than the conventional resources. Their recovery is a 

big technical and technological challenge, and thus 

the latest solutions should be used for optimal access 

and extraction. 

Production of hydrocarbons from unconventional 

reserves is a difficult and demanding task. This applies 

both to techniques, technologies, knowledge, engineering 

tools and equipment as well as to the cost of 

investment. Commencement and implementation of 

such a task is likely to require exact planning and execution 

of all operations. 

The first stage of accessing unconventional hydrocarbon 

reserves is drilling. All aspects of drilling, monitoring, 

extraction, stimulation and other operations 

should already be considered and properly planned at 

the well design stage. The design stage is necessary in 

order to fully control the drilling process, in order to 

carry out effective extraction as well as various well operations 

including operations stimulating production. 

The well design should predict all possible drilling 

scenarios, particularly in regard to the stimulation operations. 

First, the drilling equipment, as well as the 

well design, must allow to perform the stimulation 

operations. The most important thing is to have a casing 

of an appropriate diameter, strength, mechanical 

resistance to abrasion as well as chemical resistance 

to corrosive environments. All of these properties are 

necessary to perform a hydraulic fracture treatment, 

during which large volumes of treatment fluids with 

proppant are injected at a high pressure. As a lot of 

stimulation operations utilise coiled tubing (CT) as 

well as a variety of other tools mounted on the tube, 

horizontal drilling equipment must be suited to coiled 

tube interventions. 

During simulation treatment operations and particularly 

fracturing, the location of the axis of the well 

in relation to the direction of minimum horizontal 

stress is very important. The principles of rock mechanics 

indicate that the fracture created hydraulically will 

always propagate in the perpendicular direction to the 

minimum principal horizontal stress. In the case of hori 

zontal wells, this fact is highly relevant. This is because 

when the direction of the minimum horizontal stress 

is known, appropriate directing of the drilling can control 

the arrangement of the generated fractures in relation 

to the axis of the well. This is shown schematically 

in Fig. 2. 

Perforation 

interval 

Fig. 2. Arrangement of generated fractures in horizontal 

wells 

The orientation of the stresses in the reservoir formation 

can be determined, for example, from microseismic 

survey carried out at the time of the hydraulic 

fracture treatment. During the hydraulic fracturing, 

discontinuities can be created which are perpendicular 

to the direction of the axis of the well. 

A long stretch of the access interval is another 

characteristic feature of horizontal wells which influences 

the treatment technique and the technology of 

stimulation operations. The horizontal part of the well 

can be left uncased while the liner can be cemented 

in the last column of casing and inserted into the initial 

part of the reservoir zone. The liner can also be installed 

in the entire length of the well and cemented 

only in the last column of casing, with the rest of it left 

uncemented. 

The last method of reinforcement of the horizontal 

section of the well is cementing the liner in the casing 

within the reservoir zone followed by perforation 


61

62 

of this section. In the case of uncemented 

liner, perforated liner is used 

or liner slotted on the surface before 

its installation. This type of liner can 

also be perforated after it is installed 

and cemented in a column of casing. 

Figure 3 shows a typical reinforcement 

of a horizontal well. 

Another positive aspect of using 

horizontal drilling is the potential of 

much better access to thin strata. In 

the traditional method (vertical well), 

the contact of the well with a thin 

stratum is limited to its thickness. In 

the case of horizontal drilling, however, 

the contact area of the well 

with the reservoir is much greater, 

which obviously improves the extraction 

potential. The hydraulic fracture 

treatment is performed against 

the elastic strength of the rock matrix. 

In order to create a fracture and 

further extend it, the stress applied 

obviously has to exceed the strength 

of the rock. 

The hydraulic fracturing of reservoirs has been used 

for decades. Until recently, these operations were carried 

out in a conventional way. The discovery of shale 

resources, however, has changed the techniques and 

technology used for fracture treatment. 

As a result of tests and experiments in shale reservoirs 

as well as laboratory experiments supported 

by theoretical analysis, fracturing technology, which 

uses fluids of very low viscosity of less than 10 cP, was 

developed. It is known as slickwater fracturing. This 

treatment fluid is water-based with a significantly reduced 

proportion (less than 1%) of natural or synthetic 

polymers. The additive is used to reduce the 

flow resistance within the casing as well as through 

the perforations and slots. Apart from reducing the 

polymer concentration and abandoning the technology 

of cross-linking linear polymers, application 

of this technology involves pumping at high flow 

rates which may reach even 16 m 3 /min. This is due 

to the need to inject appropriate amounts of fluid 

into the formation, exceeding the pressure, which 

is sufficient for its fracturing and fracture propagation, 

with simultaneous high infiltration into the matrix 

and the system of natural micro-fractures. This 

type of treatment operations also requires a much 

lower concentration of proppant. Typical slickwater 

fracturing is performed at proppant concentrations 

ranging between 30 kg/m 3 and 120 kg/m 3 . The procedures 

which are considered as aggressive in this 

technology are characterised by proppant concen- 



Fig. 3. Reinforcement of horizontal well with uncemented perforated liner 

trations reaching 360 kg/m 3 [5]. The characteristic 

points of this technology are 

• reduced level of damage of fractures and matrix 

due to reduced concentrations of the polymer; 

• large quantities of treatment fluid used for treatment 

operations; 

• relatively low cost; 

• necessity of pumping at very high flow rates; 

• good penetration into fracture in the stimulated 

horizon; 

• very complex geometry of the fractures; 

• possibility of reusing the treatment fluid multiple 

times; 

• high infiltration into matrix and micro-fractures; 

• limited potential of transporting proppant; 

• very small width of the created fractures; 

• use of small-sized proppants; 

• lack of possibility of using traditional models 

and simulators for designing fracture treatment 

operations; 

• fast closing of the fractures after completion of 

the fracture treatment; 

• lack of filter cake. 

The arguments presented above indicate that hydraulic 

fracture treatment in unconventional reservoirs 

is a difficult task. It is not possible to design the fracture 

treatment in a traditional way, because most of 

the traditional models and assumptions do not apply 

to this technology and to unconventional plays; thus 

the use of simulators for the design of treatment oper-


1500 

1000 

500 

0 

-500 

-1000 

-1500 

-2000 

-2500 

Observation borehole 

-3000 

-1000 -500 0 500 1000 1500 2000 2500 3000 

Fig. 4. Microseismic interpretation of the fracture geometry 

ations may give misleading results. In many cases, the 

design and preparation of operations in this technology 

require empirical experience, knowledge gained 

from observations and measurements taken during 

treatment operations, as well as from earlier obtained 

production results. 

As a result of fracturing of shale reservoirs, a complex 

system of fractures is formed which contrasts with 

the typical operation in conventional reservoirs where 

a fracture with two wings on both sides of the well 

are created. Currently, it is impossible to describe such 

a system with the existing models. Such models will 

have to be developed in the future as well as appropriate 

software for analysis and design of such treatment 

operations. 

Currently, all attention is focused on checking the 

data from treatment operations together with analysis 

in relation to their results. A new monitoring tool 

is microseismic mapping. To interpret the effectiveness 

and spatial extent of the treatment, an analysis of 

microseismic events recorded during hydrofracking is 

necessary. The analysis allows the seismic events to be 

mapped in time and space. Such mapping can form 

a basis for interpretation of the geometry of the created 

system of fractures. Experience gained from earlier 

analyses indicates that the system of fractures has a 

three-dimensional character. During the treatment operations, 

a great number of fractures occur which have 

small width and large extent. These fractures form a 

network which enables contact with the natural microfissures 

(Fig. 4). 

• 

• 

Such a definition of fractures in 

shale reservoirs resulted in the necessity 

to introduce a new parameter 

not used in relation to fractures 

created by traditional methods in 

conventional reservoirs. The parameter 

describes the volume of 

reservoir covered by the process 

of stimulation, and is referred to as 

the reservoir stimulation volume 

(SRV) [3, 7]. Theoretical and empirical 

efforts to define and describe 

the process of forming a volume of 

fractures shale reservoirs revealed 

that 

• slickwater fracturing in shales 

results in creating a system of 

fractures that covers a large volume 

of the fractured rock; 

• microseismic surveys carried out 

during fracture treatment operations 

are necessary in order to 

describe the geometry of the 

fracture system; 

the system of fractures has an area which is 10 

to 100 times larger than traditional fractures with 

two wings on each side of the well; 

contemporary models for the design of hydraulic 

fracturing are unsuitable for slickwater fracturing 

of shale reservoirs. 

Another issue which is very important for the efficiency 

of the operation is the transport of proppant. 

When a fluid with viscosity of less than 10 cP is used, 

transport of proppant in suspension is impossible. One 

of the available solutions is to use a proppant of the 

lowest possible density. Gravitational sedimentation 

can be partially reduced by reducing the particle size 

of proppant. The problem of transporting proppant by 

low-viscosity liquids which are injected at high rates 

into very narrow fractures has been repeatedly tested 

in laboratories. The results indicate that proppant 

pumped in such conditions is first deposited near the 

well, while the remaining amount slides onto the already 

settled proppant, and is transported by the fluid 

further inside the fractures. 

Thus, the transport of proppant is in contrast with 

the transport that takes place during traditional fracturing 

in which proppant is the first to reach the most 

remote parts of the fractures. This requires changes to 

be made in the strategy of injection. One of the major 

objectives of fracture treatment is to achieve high conductivity 

along the fractures near the wall of the well. 

Thus, in traditional fracture stimulation, the maximum 

concentrations of proppant and the largest grain sizes 


63

64 

are added during the last stage of injection, so that the 

largest grain sizes are placed near the inlet of the fractures. 

In order to achieve the same result in fracturing 

the unconventional reservoirs, the largest grain sizes 

and the largest concentrations of proppant should be 

used during the first stage of injection. Sometimes, the 

traditional injection process is also used. 

The fracture system produced in the process of hydraulic 

fracturing of unconventional reservoirs has a 

very small width. Because of this, proppant with grains 

of small or very small diameter has to be used. Additionally, 

due to low concentrations of proppant in 

the injected fluid, there is a problem of delivering adequate 

conductivity of the fractures. Thus, these fractures 

are probably several times smaller than the fractures 

in conventional reservoirs, although they will not 

be damaged by the remains of the polymer and the 



Table 1. Schedule of fracture treatment operations in a shale reservoir 

Treatment fluid 

Proppant concentration 

[kg/m 3 ] 

Type of proppant 

Volume of fluid 

[m 3 ] 

Slickwater-pad 0 - 227 

Amount of proppant 

[kg] 

Slickwater 36 100-mesh sand 22 774 

Slickwater 60 100-mesh sand 22 1 290 









Slickwater 156 20/40-mesh sand 193 30 034 

Slickwater-flush 0 - 

Total 1 280 138 105 

filter cake. In the case of conventional reservoirs, the 

conductivity loss may even reach 95%. The fracture 

system created in an unconventional reservoir may be 

associated with a conductivity equal to that of severely 

damaged, high-conductivity fractures in a conventional 

reservoir. 

This method of stimulating unconventional reservoirs 

has also led to a significant development in the 

design of proppant materials. 

In order to improve the efficiency of injecting proppant 

into fractures and micro-fractures, new types of 

proppant materials have been introduced for commercial 

use. The first type consists of proppant materials 

with densities similar to the density of water 

(1.05 g/cm 3 ). These materials are almost able to float 

in the treatment fluid, which allows the length of the 

fractures to be extended.


Another new type is porous proppant materials 

which have lower densities and create additional voids 

for the gas flow. 

Thermoplastic materials which change their 

shape due to stress and temperature and thus are 

more resistant to compressive stresses form another 

new group of proppants. Selecting the proppant 

placement technique, type and concentration 

of proppant will always remain the domain of engineers 

who design fracture treatments. Until a perfect 

proppant is discovered, i.e. that which has the density 

of water, hardness of diamond and price of sand, 

both the technical and economic aspects of the operation 

will have to be taken into account [3]. 

Apart from the modern technology of hydraulic 

fracturing performed in unconventional reservoirs, 

which is completely different from the traditional 

technology, great progress was made in the techniques 

of preparing a well for treatment operations. 

One such technique is offered by the modern equipment 

which allows the single-trip, multi-stimulation 

system (STMSS) to be used [1]. This system is mainly 

used for drilling horizontal uncased wells to access 

unconventional reservoirs which require multiple hydraulic 

fracture treatments. The equipment includes 

a liner which is fixed in the last column of vertical 

casing in the well. The use of such equipment means 

that it is not necessary to case the horizontal part of 

the well, cement it and perforate it for every treatment 

operation. The same applies to lowering and 

fixing packers. Additionally, the drilling equipment 

can be moved to another location after the STMSS 

equipment is properly prepared and lowered into 

the well (including packers prepared for the treatment 

in each of the wells), located and fastened in 

the casing, while packers are fixed for treatment operation. 

All of the subsequent hydraulic fracturing 

operations are performed by appropriate control of 

the flow in the STMSS. 

This article presents the basic aspects of stimulating 

unconventional reservoirs. Such deposits require 

novel approaches and unconventional technology 

and techniques. An example of an extremely novel 

approach to hydraulic fracture treatment in shale 

reservoirs is the treatment operation carried out in 

the Codell Formation in the Colorado Basin. The best 

results of hydraulic fracturing in this formation were 

obtained by flowing the well about two months after 

the treatment operation! Hybrid treatment operations 

were also frequently done. After the initial 

stage of limited pad treatment, proppant injection 

was carried out in phases alternating with phases 

without proppant (known as sweep stages) to help 

transport the proppant injected earlier further into 

the fractures. Table 1 presents an example of a sched- 

ule of typical hydraulic fracturing carried out in shale 

reservoirs. 

To summarise, the following conclusions can be 

drawn from the presented aspects of hydraulic fracturing 

of unconventional reservoirs: 

• hydraulic fracturing which uses low-viscosity 

fluids is an effective method of stimulating unconventional 

reservoirs; 

• these treatment operations require large 

amounts of treatment fluid with proppant to be 

used as well as pumping at high flow rates; 

• microseismic mapping technique is the primary 

method of assessing the geometry of the fracture 

system; 

• during the design of treatment operations 

which are carried out with low-viscosity, water-based 

fluids in unconventional reservoirs, 

simulators for conventional reservoirs and techniques 

should not be used; 

• the method of transporting and placement of 

proppant within fractures in unconventional 

reservoirs is very different from the method 

used in conventional treatment operations; 

• the development of technology for stimulating 

unconventional reservoirs has led to the introduction 

of new types of unconventional proppant 

materials; 

• improvement of the treatment techniques in 

these types of reservoirs contributed to the 

development of new techniques and tools for 

hydraulic fracturing. 

Literature 

The author is a researcher at the Krosno branch of 

the Oil and Gas Institute 

1) Contreras J.D., Dust D.G., Harris T., Watson D.R. “High impact 

techniques and technology increase ultimate recovery in tight 

formation” SPE 115081; 2008. 

2) Cramer D.D. “Stimulating unconventional reservoirs: lesson learned, 

successful practices, areas for improvement” SPE 114172, 2008. 

3) McLennan J.D., Green S.J., Bai M., “Proppant placement during tight 

shale stimulation literature revive and speculation”, ARMA 08-355, 

2008. 

4) Paktinat J., Pinkhouse J.A., Johanson N., Williams C., Lash G.G., 

Penny G.S., Goff D.A. “Case study: optimizing hydraulic fracturing 

performance in northeastern United States fractured shale formation”, 

SPE 104306, 2006. 

5) Palish T.T., Vincent M.C., Handren P.J. “Slickwater fracturing – food for 

thought”, SPE 115766, 2008. 

6) 

Warpinsky N.R., Mayerhofer M.J., Vincent M.C., Ciopolla C.L., Lolon E.P. 

“Stimulating Unconventional Reservoirs: Matrix network growth while 

optimizing fracture conductivity”, SPE 114173, 2008. 


6

66 

Negative eff ects are also noticeable in the sudden 

increase in emissivity of economies of developing 

countries as well as the lack of absolute certainty 

about the causes and future impact of climatic 

changes. We cannot deny that the rule of caution is 

justifi ed here, however, we cannot disregard the evident 

increase in concentration of greenhouse gas in 

the atmosphere (Fig. 1). 

Climatologists are worried about the intensity of 

violent meteorological phenomena taking tragic toll 

and also the increase in average temperatures on the 



The signi cance of inventories of methane emission from oil and gas extraction and 

gas industry sector and the role of emission measurement in inventory accuracy. 

Greenhouse gas versus the Earth 

CO2 [ppm] 

JERZY RACHWALSKI 

Stopping the global warming seems to be one of the most important and 

the most diffi cult tasks for modern civilization. It is the huge costs of greenhouse 

gas emission reduction in developed countries that are the disadvantage 

in realization of the task. The developed countries apparently lack 

social motivation for changing the production and consumption models to 

politically favourable and more economical use of resources and energy. 

360 

340 

320 

300 

280 

260 

Fig. 1. Increase in concentration of greenhouse gas in the atmosphere in the industrial era 

Earth which may result from the increase in concentration 

of greenhouse gas in the atmosphere. Due to this 

fact, the world summons all its strength to preventive 

and adaptation actions. 

”The United Nations Framework Convention on Climate 

Change” (UNFCCC) proposed in 1992 at the Earth 

Summit in Rio de Janeiro came into force on 21 March 

1994 after ratifi cation by 50 signatories who pledged 

to limit the greenhouse gas emission to the extent not 

threatening with dangerous anthropogenic climate 

changes of the planet. Since 1995 there are annual 

CH4 [ppb] 

1750 

1500 

1250 

1000 

750


meetings of Conferences of the Parties (COP) whose 

aim is to assign tasks and monitor progress in activities 

aiming at stopping the global warming. During the 

COP-3 in 1997 the ”Kyoto Protocol” was adopted and 

it imposed precise obligations on industrialized countries 

to reduce the emission. They were obliged to reduce 

greenhouse gas emission in the years 2008-2012 

by at least 5% in comparison with the emission level 

from 1990. The protocol came into force in 2005 after 

ratification by 55 UNFCCC members (total emission in 

signatories’ countries constitutes 55% of global greenhouse 

gas emission). 

The organization which provides technical knowledge 

concerning climate changes and oversees national 

emission inventories is the Intergovernmental 

Panel on Climate Change (IPCC) which exists since 

1988. Its guidelines on inventories and term reports 

(Assessment Reports AR) are the basis for decisions 

concerning the activities to prevent climate changes. 

The fourth report (AR 4) published in 2007: 

states that the following global climate change, 

with probability of over 90%, might be attributed 

to anthropogenic greenhouse gas emission (the 

probability that it is caused by natural factors is 

estimated at about 5%), 

includes forecasts for the 21st • 

• 

century concerning 

the rise in temperature (from 1.8°C to 4.0°C, with 

possible changes from 1.1°C do 6.4°C), the rise of 

oceanic waters level (from 28 cm to 42 cm), the 

occurrence of heat wave and heavy rainfall (with 

probability of 90%), the rise of tropical cyclone 

intensity (with probability of over 66%). 

Rules of greenhouse gas emission 

inventory and its significance 

The basis for estimating the danger related to climate 

changes is reliable (with unified rules) greenhouse 

gas emission inventory. The currently binding 

rules of inventories are noted in “2006 IPCC Guidelines 

for National Greenhouse Gas Inventories” document 

which was preceded by a study published in 2002 entitled 

“Background Papers. IPCC Export Meetings on 

Good Practice Guidance and Uncertainty Management 

in National Greenhouse Gas Inventories”. 

According to these documents, the emission inventory 

for each segment might be conducted on 

three different levels varying in the extent of detail. 

The easiest approach consists in using an aggregated 

emission factor treated referred to the activity factor 

which characterizes the whole segment, for instance 

the scale of production, the number of systems in 


67

68 

a given segment. The most complicated approach 

consists in detailed inventory of sources and using 

emission factors which characterize particular sources. 

The factors are the most favourably determined 

as a result of measurement or they are taken from 

literature. 

Therefore, the emission from a given segment of 

E industry or its part is counted as a total of emission 

from different types of sources. However, the emission 

from a given type of sources is the arithmetic product 

of the already set and specific factor of EFi emission 

and AFi activity factor. 

The documents enumerated above provide both 

the methodological rules and the emission factors 

which are aggregated and those which are separated 

to particular subsectors and sources. Worth emphasizing 

is the fact that the recommended emission factors, 



Table 1. Model value of aggregated emission factors 

Origin of emission factors data Category of emission sources Value of emission factor 

Revised 1996 IPCC Guidelines 

for National Greenhouse Gas 

Inventories 

IPCC/OECD/IEA Programme 

on National Greenhouse Gas 

Inventories 

Segments of refining, transmission, 

storage and distribution of natural 

gas in Western Europe 



gas in USA and Canada 



gas in the former USSR and in 

Central and Eastern Europe 



gas in remaining countries of the 

world 

72 000 – 133 000 kg/PJ with reference 

to the amount of consumed 

gas 


to the amount of consumed 

gas 


to the amount of extracted 

gas 

118 000 kg/PJ with reference to 

the amount of consumed gas (in 

the case when emission is estimated 

to be small low) 

288 000 kg/PJ with reference to 

the amount of extracted gas (in 

the case when emission is estimated 

to be considerable) 

especially those aggregated (but not only), vary significantly, 

which is illustrated in tables 1 and 2. The difference 

is up to two orders of magnitude. 

Reliable (based on unified rules) national greenhouse 

gas inventories emission is, in the global scale, 

the basis for estimating the danger connected with 

climate changes, the results of taken actions and functioning 

of the so-called ”mitigation mechanisms” (”flexibility 

mechanisms”), such as emissions trading (ET), 

pro-ecological investments in developing countries, 

joint implementation, emission compensation resulting 

from the activation of CO2 absorption by biomass. 

Regardless of the role of emission inventory on international 

level, conclusions from the national inventory 

might also be significant for a particular country 

by constituting the basis for own internal policy which 

concerns greenhouse gas emission and might be 

more restrictive than the one resulting from international 

obligations. 

Independently of national inventories and supervision 

of greenhouse gas emission at the central level,


Tables 2. Model emission factors for distribution mains 

Source Country or estimated range of emission Emission factor 

Report of Study Group 8.1 „Methane 

Emissions Caused by the Gas 

Industry World – Wide” 21st World 

Gas Conference June 6-9, 2000, Nice, 

France 

Report of Study Group 8.1 „Methane 

Emissions Caused by the Gas 

Industry World – Wide” 21st World 

Gas Conference June 6-9, 2000, Nice, 

France 

Canada 

USA 

the emission reduction policy is developed by companies 

in which greenhouse gas emissions constitute a 

significant economic aspect or reflect on the corporation 

image. 

In terms of economy, there is a significant difference 

between the costs of avoided emission units (investment 

and operational) and the costs connected 

with using the environment (emission charges) and 

– sometimes difficult to estimate – the costs of sector 

activity expansion connected with resistance of 

the society which does not accept non-ecological 

solutions. 

Identification of the emission sources and causes 

and the estimation of its range in the following years 

and the list of avoided emissions might be regular elements 

of companies’ estimation by the society, owing 

to the currently practically common publications 

of environmental report about the company’s activity 

(Environmental Reports, Health Safety Environment 

(HSE) Reports, Sustainable Development Reports, Corporate 

Social Responsibility (CSR) Reports). These re- 

12 000 m 3 /km 

distribution mains 

15 600/km 

distribution mains 

emission estimated to be low 100 m 3 /km 

emission estimated to be moderate 1 000 m 3 /km 

emission estimated to be considerable 10 000 m 3 /km 

emission estimated to be low 1 000 m 3 /station 

emission estimated to be moderate 5 000 m 3 /station 

emission estimated to be considerable 50 000 m 3 /station 

ports may also be a proof or evidence of companies’ 

concern about the environment. An aspect of no small 

importance is also the care about the employees, especially 

when greenhouse gas emission might pose a 

threat to their health or life. 

Greenhouse gas emission 

in the oil and gas extraction 

and gas industry sector 

Oil and gas extraction and gas industry sector emits 

mainly methane which, along with carbon dioxide, is 

the second aggressive gas posing threats to the climate. 

Methane is the greenhouse gas of global-warming 

potential (GWP) about 21 times higher than carbon 

dioxide. Ecological damage caused by the emission of 

1 ton of methane is estimated to be 100-520 USD compared 

with 3.6 USD to 3.8 USD for CO2. 


69

70 

The remaining greenhouse gas in this sector is 

not emitted at all or is emitted in small amounts (carbon 

dioxide). The emission of carbon dioxide in small 

amounts may occur only in the case of combusting on 

a mass scale of natural gas accompanying petroleum; 

however, this occurs more and more rarely. 

IPCC attributes to natural gas fuel cycle from 9% 

to 15% of global anthropogenic methane emissions. It 

weakens the ecological argumentation in favour of the 

priority of using natural gas. Methane emissions constitute 

one of the essential environmental aspects in 

almost every link of natural gas fuel cycle. 

On that account the oil and gas sector should aspire 

to reduce methane emission but in order to bring 

this to that point, at first the emission sources ought 

to be identified and then their range estimated and at 

last the economical calculation of emission reduction 

costs must be carried out. 

History of methane emission 

inventory in Poland 

Methane emission inventory from the Polish gas 

industry has not been accomplished yet. The data 

reported to IPCC by the Ministry of Environment are 

based on the estimation carried out hastily in 1994 by 

a group of trade experts and experts from the Oil and 

Gas Institute. Virtually, it was the only work in which 



– taking into consideration the IPCC guidelines which 

were then in effect, the current (but not complete) 

data from 1994 about the system activity and on the 

basis of emission factors mostly taken from literature 

– the range of emission and greenhouse gas emission 

factors: methane, carbon dioxide and non-methane 

volatile organic compounds (NMVOC) were estimated 

for the year 1992 from the Polish sector of petroleum 

and natural gas output, from natural gas refining, 

from this gas’ transmission mains and from distribution 

mains. 

The collected data were used for calculating the 

total emission of 164 Gg methane (in which 7.4 Gg 

comes from oil and gas output and 156.2 Gg from refining 

process, transmission, storage and gas distribution) 

and the overall emission factor (0.0655 kg CH4/GJ 

in the output sector and 0.4515 kg CH4/GJ in the sectors 

of refining, transmission, storage and gas distribu- 

tion). The calculated total emission constituted about 

2.4% of annual gas consumption (345.99 PJ in 1992). 

This, even for that time, high value of emission was 

moved in national reports to the following years, although 

the group of experts estimating the 1992 

emission clearly expressed the high and impossible 

to estimate uncertainty of the result and pointed out 

its causes. The result of emission inventory from 1998 

based on these calculations was characterized two 

years later as:

• 

• 

• 

• 


”complete estimation which took into consideration 

all possible sources”, 

”estimation of average credibility”, 

”estimation with subsector division used”, 

”estimation of 8.1% uncertainty”. 

Nonetheless, these estimations have not taken 

into account considerable changes that the gas industry 

system has undergone (coking gas withdrawal, 

cast-iron gas pipeline replacement, material structure 

change in distribution segment, changes in gas pipeline 

age structure, considerably higher number of Ist 

grade reduction station). The uncertainty of this estimation, 

taking into consideration all the changes that 

have taken place, certainly amounts to at least several 

dozen percent. 

The following years brought a positive change in 

the way the emission inventory was perceived by com- 

panies. Other subcategories of the oil and gas segment 

became interested in estimation of methane emission 

range from the scope of their action. And so in the 

years 2002/2004 in the Oil and Gas Institute methane 

emission inventory was carried out from the national 

transmission mains for the first time (commissioned by 

the Polish Petroleum and Gas Mining and later by the 

Gaz-System). The first stage of this undertaking was 

to estimate the emission from transmission system 

on the basis of the available emission factors. The un- 

dertaking was continued in order to verify the given 

results, on the basis of field measurements, emission 

for the system elements, especially gas filling stations, 

pumping stations, shut off and relief valve systems, and 

gas pipelines to a small extent. Taking measurements 

and inventory verification led to achieving estimated 

emission value of 3.5 times lower. This value also raises 

doubts because the emission factor from high pressure 

gas pipelines has not been verified – it was based 

upon literature factors. The achieved results prove that 

using own emission factors denoted by measurements 

can lead to a considerable reduction of emission range 

in comparison with the results of calculations made on 

the basis of literature data. Verification of the data concerning 

emission from gas pipelines is undoubtedly 

necessary. This issue is very difficult but it is possible 

to execute and most probably it will lead to emission 

reduction of about 30%. 

In 2003 the national oil and gas mining company 

(OGEC) commissioned preliminary methane emission 

estimation on the basis of the literature factors to the 

Oil and Gas Institute and in 2007 they commissioned 

verification of volatile methane emission inventory 

made in 2003 on the basis of measurement data. Also 

in this case, grounding the inventory on own emission 

factors made on the basis of measurements brought 

a significant reduction of methane emission from the 

output sector. 


71


At present the Oil and Gas Institute accomplishes 

the activity which aims at determining methane emission 

from distribution mains (the commission of PGNiG 

and gas industry companies). This activity, along with 

the preceding ones will allow to make the real estimation 

of methane emission from the whole natural gas 

segment in Poland. 

Methods of emission measurement 

from the oil and gas system 

Currently, there are two advanced methods of leakage/emissivity 

estimations from elements of the oil 

and gas system in the world. They involve: 

• the method of direct measurement of the 

emitted natural gas amount (Direct Flow 

Measurement); 

• instrumental methods; 

• a Bagging method); 

• a High Flow Sampler method; 

• a Pressure Decay method; 

• a marking gauge method; 

• a method of using diffusion chambers. 

These methods (apart from the marking gauge 

method) are tested and used in the Oil and Gas Institute. 

For most of these procedures have been drawn 

up to determine uncertainty of measurements. Usually, 

the uncertainty of these methods is quite small in comparison 

with the uncertainty of the selection of representative 

samples of the examined system elements. 

Errors in the inventory 

The errors made during the inventory usually result 

from the accepted estimation method, i.e. it depends 

on whether the method is based on the estimation using 

the factors available in literature or factors based 

on own emission measurements. In the first case, a 

considerable mistake can be made (confirmed by the 

results of the inventory made in the Oil and Gas Institute). 

In the other case, essential is the selection of the 

representative sample of the examined elements. 

In the case of the oil and gas system, the situation 

is sometimes complicated because the elements 

are numerous and technologically and technically 

diversified. 

The omission of considerable errors requires experience 

in both the emission inventory and the interpretation 

of measurement results. 

Undoubtedly, the avoidance of even several hundred 

percent of load (bias) on the inventory result is 

possible when the result is based on own measurements 

for the national system because measurement 

methods are precise enough and the only problem 

concerns the selection of a representative sample for 

examination, which requires profound knowledge of 

the system. 

Summary and conclusions 

1. Premises indicating the greenhouse gas emission 

as a probable perpetrator of significant climate changes 

(climate warming) are very real. 

2. Keeping in mind the caution rule, observation 

of greenhouse gas concentration changes should be 

carried out an in the atmosphere and also the range 

of gas emission in particular sectors of anthropogenic 

activity. 

3. The oil and gas sector is the source of mainly 

methane emission, the gas of greenhouse gas potential 

exceeding that of carbon dioxide several times. This 

is the reason why emission from these sector should be 

carefully examined, especially its part (emission range) 

in the greenhouse effect and the opportunity (on the 

basis of inventory results and technological and economical 

analysis) of emission reduction. 

4. The experience of the Oil and Gas Institute shows 

that there is an indicated inventory method based on 

emission factors denoted in the country because relying 

on those recommended or found in the literature 

may lead to making errors. 

5. There are many available measuring methods of 

relatively low uncertainty of results, even though there 

is still the issue of representative sample selection for 

examination. 

6. If the programme of emission inventory from 

distribution mains comes into being in Poland, it has 

to be assumed that the programme of emission estimation 

from the national system of natural gas will be 

realized. 

7. Achieving this goal does not mean that continuation 

of the inventory and measurements programme 

should be abandoned because the system is dynamic 

and the introduced technologies and techniques can 

contribute substantially to emission reduction from 

this sector. 

The author is the research worker at the Oil and 

Gas Institute in Cracow 


73

74 

The hubs are discussed mostly in the context of 

road, air or railway transport, while they are also 

present in the gas market where they function as a 

junction for wholesale turnover of gas within one 

transmission system. The diff erence between gas and 

transport hubs results from the properties of the object 

of transaction, i.e. gas, and infrastructural and regulatory 

conditions of the gas sector. 

Omne principium diffi cile est – which 

means – each beginning is diffi cult 

Gas hubs developed together with the evolution 

of gas markets, which from monopolistic structures 

regulated by the interest of a single, integrated energy 

enterprise gradually became dependent on free market 

mechanisms. Capital-intensive character of the investment 

and benefi ts resulting from the scale of the 

gas sector business had a positive impact on the rise 

of large corporations, which – in order to guarantee 

stability of supplies and prices of the fuel – concluded 

long-term contracts. Where only one company existed, 

with the function of both gas producer/importer and 

distributor – simultaneously holding contracts concluded 

for many years to come – there was no need 



Gas Infrastructure 

Will gas hubs become ‘trendy’ in 

Poland too? 

IWETA GDALA, MATEUSZ KONIECZNY, 

Gas hubs are elements of gas transmission infrastructure where 

they act as a catalyst in purchase and sale transactions, supporting 

the function of balancing the market. Their appearance and 

development is connected directly with liberalization in the sector, 

that is why they are seen as synonym of free market. 

to make short-term commercial transactions which 

might be facilitated by the presence of hubs. Only the 

appearance of a larger number of entities interested 

in purchase or sale of the fuel might spark off the demand 

for standardized platforms of commercial exchange 

and transaction related services, such as providing 

information concerning commercial partners, 

registering the changes in gas title transfer or balancing 

the items. 

In order that monopolized and regulated gas market 

could start its way to liberalization, it was essential 

to ensure the support and determination of the regulator 

who demanded market-oriented conduct from 

the market participants. The regulator’s tools were e.g. 

laws gradually revoking the regulation of gas prices, 

regulations which guarantee the access of any third 

party to the transmission and distribution network, 

privatization of national energy companies and gas release 

programmes. 

Infrastructure comes fi rst 

Initiated by the regulator liberalization in the gas 

sector created the basis for commercial exchange, however, 

the transactions would be practically impossible 

without appropriate infrastructure. It is just the well-


G a s re l e a s e p rogramme 

The goal of the gas release programme is to 

make the fuel available for wholesale turnover by 

imposing on the dominant subject the duty to resale 

specific amounts of gas to its competitors. The 

resale may take the form of auctions or bilateral 

agreements. 

An example of a country which implemented 

the gas release programme in the years 2006- 

2011 is Denmark. The obligation to implement the 

programme was imposed by the European Commission 

on the Danish company DONG Energy 

– a merger of six companies – in order to maintain 

competition in the market after the fusion had 

been complete. 

developed infrastructural environment which enables 

easier access for the new entities to the network, and 

also diversity of sources of supplies, elasticity of transmission 

or access to the reserves that conditioned the 

effectiveness of implementing the principles of free 

market in the gas sector and facilitated construction 

of hubs. 

The way that the development of gas infrastructure 

contributed to creating the gas hub can be 

well illustrated by the example of the Belgian city of 

Zeebrugge. 

Zeebrugge is a port on the North Sea, located in 

northern Belgium. This port became significant as an 

essential element of the Belgian gas infrastructure in 

LNG 

Great Wielka 

Britain 

Zeebrugge 

Norwegia Norway 

Germany 

Russia Rosja 

The amount of gas offered as part of the programme 

corresponded to about 10% of annual 

volume of the Danish market (4.9 TWh). The delivery 

site was the virtual hub – Gas Transfer Facility, 

operated by the Danish transmission network operator 

Energinet.dk. DONG Energy supplies to the 

GTF hub were realized as swaps – the gas offered 

to gas trading companies in the Danish market was 

then collected by DONG in these companies` home 

markets (NBP, Zeebrugge, TTF, Net Connect Germany, 

GPL-VP). In this way, the gas release programme 

had an impact on several markets simultaneously: 

the one in Denmark and the home markets of the 

companies participating in the exchange. 

1987, when LNG regasification terminal was built there. 

Its goal was, in the first place, to enable gas supplies 

from the Algerian deposit Hassi R’Mel, but also to allow 

elasticity and potential access to gas sources situated 

in remote world markets. Two years later, the construction 

of then the longest and largest offshore gas pipeline 

in the world began (814 km, 15 bn m³) – Zeepipe, 

connecting the Zeebrugge port with the Norwegian 

deposits Seljpner and Troll. The Zeepipe was started in 

1993. In the same year another connection was made 

between the Belgian and Luxembourgish transmission 

pipelines. 

In 1995 the most important – for the future gas 

hub – infrastructural project began: construction of a 

Wielka Great 

Britain 

Zeebrugge 

France Francja 

Netherlands 

Germany 

Fig. 1. Directions of gas supplies and distribution from the Zeebrugge hub. Source: Own compilation based on www.huberator.com 


7

76 

Fig. 2. Infrastructure of the Zeebrugge hub. Source: Fluxys 

two-way connection with Great Britain (Interconnector). 

The main task of the project was to link Bacton in 

England with the complex in Zeebrugge, which was 

supposed to enable transmission of surplus supplies 

of the British gas to the European continent, but it also 

ensured access for the European producers to the market 

in Great Britain. Additionally, a part of the Interconnector 

project was the construction of a gas pipeline 

from Zeebrugge to Germany, which in turn resulted in 

the access not only to the German pipeline, but also to 

NBP – National Balancing Point(GB) 

ZEE – Zeebrugge (BE) 

TTF – Ti T tle Tr T ansfer Facility (NL) 

PEG – Point d’Echange de Gas (FR) 

NCG – NetConnect Germany (DE) 

GSP – Gaspool (DE) 

GTF – Gas Tr T ansfer Facility (DK) 

NPTF – Nord Pool Tr T ansfer Facility (DK) 

CEGH – Central European Gas Hub ( 

PSV – Punto di Scambio Virtuale (IT) T) T 

CDG – Centro de Gravedad (ES) 

Fig. 3. Gas hubs in Europe. Source: Own compilation 


T 


the Central-Eastern European markets. Both connections 

(with Great Britain and Germany) were initiated 

in 1998. 

Interconnector contributed directly to creating the 

gas hub, as it enabled arbitration transactions based 

on diff erences in gas prices between Great Britain and 

continental Europe. Increased commercial exchange 

brought about higher demand for services of the entity 

which would enhance interaction between the participants 

in the market. To meet the demand, Distrigaz, 

then the owner and operator of the Belgian transmission 

pipeline, established the Huberatorm company 

– as operator of the gas hub in Zeebrugge whose task 

was to supervise commercial transactions conducted 

in the port. 

Types of hubs 

The Zeebrugge hub is a physical hub, i.e. a real 

point in the Belgian transmission network located at 

the junction of several gas transmission routes. Apart 

from physical there are also virtual hubs which cover 

the whole area of gas pipeline system within a single 

balancing market. As a consequence, the virtual 

hubs are usually characterized by a greater number 

of entry and exit points and higher fl uidity than 

physical hubs.


16 

14 

12 

10 

8 

6 

4 

2 

0 

Most hubs in Europe have virtual character. The 

best developed European gas hub is the virtual National 

Balancing Point (NBP) in Great Britain. Unlike 

in the case of Zeebrugge, the establishment of NBP 

(though it could not have been created without welldeveloped 

gas infrastructure) was a direct consequence 

of adopted legal regulations. In 1995 the Gas 

Act was passed which contained a schedule of full liberalization 

of the gas market and established a new licensing 

system for the market participants. Based on 

the Gas Act, the Network Code was introduced – an 

ZEE 

CEGH 

TTF 

PSV 

NCG (EGT) 

GSP 

PEG 

NBP 

2007 2008 2009 

Fig. 4. Fluidity in European hubs measured with churn ratio. Source: Own compilation based on “Gas Matters”, IHS-CERA, IEA, 

M. Kanai, after: Dr A. Konoplyanik, European Gas Markets Summit, London, 15-16.02.2011 

Volume [BCM/year] 

1200 

1000 

800 

600 

400 

200 

0 

Fluidity measured 

with churn ratio in 

Henry Hub in the 

USA: 377 (2009) 

2003 2004 2005 2006 2007 2008 2009 

TTF Zeebrugge NCG PEG CEGH PSV Gaspool NBP 

Fig. 5. Volume of transactions in European hubs – NBP against continental hubs [bn m 3 /annually]. Source: EIA, National Grid Gas, after: 

The Outlook for Traded Gas Markets in Europe, Gas Trading & Contracting Day (EFET), Gastech 2011, Andy Williamson, Gazprom 

official document which established principles and 

procedures for a third party access to the gas pipeline 

system and made twenty-four hour balancing obligatory. 

It is just balancing of the transmission system 

that became – apart from its transactional function – 

the basic goal of the virtual point. Each entity which 

ordered transmission services was obliged to submit 

daily nominations to the National Grid Gas as operator 

of the transmission system and administrator of NBP, 

and all transactions began to be mediated through the 

hub. The National Grid Gas was responsible for correct- 


77

78 



ing the upset balance which followed automatically 

at the end of the day, after the system marginal price, 

coming close to the prices in the cash market. 

Similarly as in the case of the Zeebrugge hub, the 

significance and fluidity of the National Balancing 

Point increased with the development of infrastructure: 

construction of the Interconnector pipeline to 

join Belgium (1998), the Balgzand-Bacton Line connection 

(BBL) with the Netherlands (2006), and also 

commissioning of LNG regasification terminals (2005, 

2009) and Langeled pipeline from the Norwegian deposits. 

The number of participants on the demand 

side rose also due to construction of gas power stations 

and engagement of financial institutions in the 

gas trade. 

At present, NBP is the best fluidity hub in Europe. 

The volumes of gas traded in the British hub exceed 

several times those in continental hubs – similarly 

as fluidity, measured with the churn ratio, i.e. the relation 

of transactional volumes to volumes resulting 

in physical supplies. It should be noted that the 

fluidity of the European hubs (including NBP) is still 

definitely lower than the one in North America (e.g. 

Henry Hub in the USA). 

Does the future depend on hubs? 

The history of gas hubs is relatively short. The oldest 

hub in Europe, which has already been operating 

for 15 years, is the National Balancing Point. Most 

European hubs appeared after the year 2000 – partly 

also due to the efforts made by the EU which aimed 

at integration and liberalization of the European gas 

sector by means of three gas directives issued in the 

years: 1998, 2003 and 2009. 

The recent years brought considerable growth 

in transactional activities in the European hubs. 

Both physical and virtual turnover volumes have increased 

by several dozen per cent annually. In 2009 

the transactions in European hubs recorded 56% 

growth, reaching the level of 292 bn m³, while the 

volume of physical transactions is estimated at over 

100 bn m³, which amounts to almost a quarter of the 

demand for gas in Europe (source: International Energy 

Agency). 

Gas hubs are dynamically developing in Germany 

where integration of local markets (diminishing the 

number of balancing markets) and a great potential 

of the demand favour reinforcing the position of the 

centers. The tendency that can now be observed in 

the German market in the micro scale is the goal of 

the European Commission – to achieve the same in 

the all-European scale. Though the most recent en-


ergy package does not define the gas market model 

directly, it recommends the introduction of several 

solutions which provide its indirect description: a tariff 

model based on entry/exit system, TPA principle, 

close cooperation between operators of transmission 

systems, etc. According to the European Regulators` 

Group for Electricity and Gas (ERGEG), the gas 

market in Europe should be a collection of entry and 

exit areas, with own virtual hubs connecting pipelines 

of capacity sold as a joint product of two systems, 

allocated in auctions. In so far as the European 

gas market model is still the subject of debates 

and initiatives in many institutions, the significance 

of the gas hubs is undeniable, so more and more EU 

countries aim at developing and reinforcing the position 

of virtual turnover points. 

And what about Poland? 

Hub A 

Hub C 

In Poland, as in other Central-Eastern European 

countries, gas hubs are absent. An exception is 

the physical hub in Baumgarten, in Austria (CEGH). 

Such a situation results from the history of the region 

strongly dependent on the Russian gas, with 

linear one-way infrastructure running from the East 

to the West and lacking many vertical (North-South) 

connections. Unfavourable factors for the newly developed 

gas hubs are also slowly progressing liberalization 

processes limited by poorly developed 

infrastructure, domination of old, conservative enterprises 

and no access to diversified gas sources (mostly 

Russian gas is used). The change of the present situation 

requires capital-intensive and long-standing 

Hub B 

Interconnectors 

Hub D 

Fig. 6. A model of gas market in Europe. Source: XVII Summit of European Energy Regulators in Madrid (January 2010), 

after: Dr A. Konoplyanik, European Gas Markets Summit, London, 15-16.02.2011 

infrastructural investments which will enable larger 

number of entities to join the market, which in turn 

will create demand for services of the hub operator. 

Poland, like other EU countries, is obliged to ensure 

permanent fluidity “in both directions at all crossborder 

inter-system connections between the Member 

States as soon as possible and no later than on 

3 December 2013.” (Directive of the European Parliament 

and Council no. 994/2010 of 20 October 2010 

concerning the measures to ensure security of natural 

gas supplies). At the same time in Swinoujscie 

an LNG regasification terminal is being developed 

which will help Poland to access new gas sources. 

What is more, new transactional possibilities may be 

created if the Yamal gas pipeline is made available to 

new entities and due to the option of virtual reverse. 

The aspiration to independence of the storage system 

operator and other EU solutions which should 

be adapted to the Polish law will create favourable 

conditions for opening the gas sector in Poland. 

All the infrastructural, market and regulatory 

changes will create demand for services rendered by 

the gas hub, and together with the rising demand, 

the introduction of virtual point of gas turnover in 

Poland may become reality, which will have a positive 

effect on the gas market operations: increased 

transparency, lower costs of transactions, higher fluidity, 

minimal risk of upset balancing and introduction 

of competitive market price mechanisms. 

Iweta Gdala is the Manager in the Business 


Mateusz Konieczny is the Senior Consultant in the 

Business Advisory Department at PwC Poland 


79

80 

Due to great demand in Poland, most of the 

LPG comes from import. The chain of logistics 

is therefore exceptionally extended. The fuel which 

reaches the end user at the filling station, i.e. which 

is pumped into a vehicle tank, should be good quality, 

meeting the requirements of a relevant specification 

and with no adverse action on an injection system 

of an engine and on the natural environment. It 

would seem that when the fuel is distributed from 

pressure tanks and pumped to the vehicle under 

pressure, it is less polluted than the petrol or diesel 

oil in the distribution chain. However, there are two 

reasons why it is not: 

• lack of complex procedures for fuel protection 

against pollution in the distribution chain or for 

its purification. 

• narrow range of obligatory quality requirements, 

which renders possible the presence of 

batches of fuel in the market which may potentially 

have negative effect on the engine of the 

refueled vehicle. 

Poland is one of the three countries in the world 

which have the largest number of vehicles propelled 

with the LPG fuel (consecutively: South Korea, 

Turkey, Poland). Over 2.3 million cars fueled with 



Meanders of the LPG logistics chain and their in uence on fuel quality 

LPG under close scrutiny 

DR INŻ. BEATA ALTKORN 

LPG (Liquefi ed Petroleum Gas) is the term for liquefi ed fraction of hydrocarbons 

C3-C4 used exclusively as fuel for engines of vehicles (including 

forklifts and cranes). It does not cover the sector of similar fuel used 

chiefl y for heating and municipal purposes, even though frequently 

the term ‘LPG’ extends erroneously to the whole C3-C4 fraction, regardless 

of the target application. LPG is ecological engine fuel obtained from 

diff erent natural resources and it is the result of various processes. 

LPG 1 move on the Polish roads, which proves that 

this fuel is very popular. As the offer of car manufacturers 

starts to include also vehicles with a factory 

mounted LPG installation, it can be anticipated that 

this fuel will still enjoy a rising popularity. 

Even though LPG is associated as one originating 

from oil processing, in fact about 60% of LPG in 

the market originates from natural gas and only 40% 

from oil processing (Table 1). 

Regardless of the origin specification of the 

LPG (engine fuel), in the domestic (and European) 

market it is denoted by standard PN-EN 589. This 

standard does not determine the chemical content 

of LPG but it comprises requirements in respect 

of fuel parameters resulting from its content. Table 

2 presents the requirements which refer to fuel 

impurities. 

This specification does not take into consideration 

the possibility of appearance of other chemical 

impurities in the LPG. However, it is known from 

experience that there are many kinds of contamination 

which may be deteriorating the LPG quality. 

The reason for their appearance may be contamina- 

1 According to the Polish LPG Association – Annual Report 2010, Warsaw 

2011.

natural gas 

crude oil 


Table 1. 

The origin of C3-C4 fractions 

used for LPG production 

Resources Origin 

condensate obtained from natural 

gas processing 

condensate from gas transmission 

pipelines 

fraction obtained due to crude oil 

stabilization to prepare it for transport 

by tankers or transmission by 

pipelines 

obtained in primary crude oil 

processing, i.e. atmospheric 

distillation 

obtained as by-product in about a 

dozen different refinery processes 

tion of the C3-C4 gas stream with undesirable chemical 

components originating from natural resources, 

production of the stream and also breakdowns 

in purification installations (or lack of them) and 

– chiefly – contamination in the LPG distribution 

chain. The standard PN-EN 589 assumes that a producer 

has made all possible efforts for the LPG to 

leave the production facility without basic impurities 

other than the ones mentioned in the standard 

and that those mentioned conform to the specification 

requirements. They do not differ in this respect 

from standard specifications for petrol and diesel 

oil. For each fuel type there may be two kinds of 

situation: 

• the fuel does not fulfill qualitative requirements 

but includes no additional impurities – it is simply 

poor quality fuel. Such a case is easy to diagnose 

at each branch analytical laboratory; 

• the fuel fulfills qualitative requirements but 

includes chemical or other impurities – in that 

case, even though the specification requirements 

are fulfilled, the fuel is destructive to 

the engine and fuel supply system. Such a 

case is difficult to diagnose quickly at an analytical 

laboratory. The identification of impurities 

causing negative effect on the fuel 

Table 2. Requirements of the European 

Specification LPG EN 

589: 2008 referring to potential 

chemical impurities 

Qualitative parameter Unit 

Total content of dienes (including 

1.3 butadiene) 

Range 

min. max 

% mole -- 0.5 

Hydrogen sulfide -- none 

Total content of sulfur (after 

introduction of odoriferous 

substance) 

Residues after evaporation (this 

batch of impurities comprises 

oil impurities and plasticizers for 

plastic) 

Water content -- 

mg/kg -- 50 

mg/kg -- 100 

Lack of free 

water in 

temperature 

0°C 

requires additional tests not included in the 

specification and vast knowledge concerning 

specificity of this fuel, its production process 

and specificity of the logistics chain. 

In case of ‘classic’ liquid fuels the refinery industry 

and standardizing organizations finally achieved 

elaboration of complex distribution procedures preventing 

the contamination of fuels in the logistics 

chain. The LPG fuel is in this respect slightly ‘brushed 

off’, which does not mean though that appearing 

problems are not similar. Meanwhile, in many questions 

some of the operators in the domestic LPG 

market follow an old saying: if a problem is not spoken 

of it means it does not exist. 

Most generally, the LPG impurities can be divided 

into four groups in respect of the way of their 

formation: 

I. contamination with undesirable chemical components 

originating from production of C3-C4 

gas stream, especially the part which is produced 

at oil refineries (they should be eliminated 

during LPG production process); 

II. contamination created in the result of incorrect 

progress of impurity cleaning process of the 

LPG stream or lack of this process; 


81

82 

Water 

III. 

IV. 

contamination created in the result of breakdowns 

(such LPG batches should not be directed 

to distribution); 

contamination created within the LPG distribution 

chain. 

A great variety of potential LPG impurities is due to 

the fact that most of the fuel originates from import. 

The Polish LPG Association reports that 86% of C3-C4 

fraction consumed in Poland originates from abroad 

(there is no estimation how much of it is the engine 

fuel though). Expanded import (both by sea and land) 



Table 3. 

The most common impurities in the LPG and problems that they cause 

Impurity in LPG Caused problem 

Residue after evaporation – it consists of plasticizers extracted 

by the LPG from plastic elements of distribution 

chain, mineral oil from LPG pumps, oil carriers of corrosion 

inhibitors applied in the LPG. 

Solid impurities: 

Air and nitrogen 

Ammonia 

High content of sulfur and/or hydrogen sulfide 

Organic fluorides 

Chlorine 

Content of unsaturated hydrocarbons: content of propylene, 

dienes, presence of trienes 

It leads to corrosive processes on inner surfaces of steel 

storage tanks and in system pipelines made from carbon 

steel plates. The corrosion then causes disappearance of 

the LPG scent and in this way increases the hazard of ignoring 

leakage in engine fueling system. Rust flakes can block 

small valves. During frost and operation of decreasing pressure, 

water may freeze. Ice may weaken or damage valves, 

pumps, piping and adjustment systems. 

They generate problems in all operations with LPG and 

with emission from car engines for their users. May induce 

emission of carbon monoxide. They result in accumulation 

of sedimentation and sludge in a reducer, injector rail and 

injectors themselves, causing their malfunction. 

They generate problems with LPG in car engines (clogging 

of filters, formation of black sludge, sedimentation, etc.). 

They generate operational problems in an engine – incorrect 

rate of fuel to air, leading to poor combustion or its 

lack. 

It reacts corrosively on copper, which results in destruction 

and wear of elements made from brass and copper in the 

fueling system of an engine and in distribution chain. 

It causes increased emission and inability to keep standards 

in respect of air quality, negative effect on elastomers. 

* Good practices for the care and custody of propane in the supply chain, A Report from Energy and Environmental Analysis Inc., PERC Docket No 

11353, First Edition, June 2005, Propane Education and Research Council (PERC), Washington 

of LPG obtained from different natural resources in the 

result of various production processes arrives in Poland 

in batches which may substantially vary in respect of 

chemical impurities. The supplies are mixed with one 

another in the distribution chain, causing potential 

combinations of impurities which deteriorate the fuel 

quality. Table 3 presents the most frequently occurring 

impurities in the LPG and lists the problems they cause 

during operation of an engine. 

The chain of LPG distribution requires detailed 

presentation, as in each of its links there is potentially 

a chance of contamination, which at the end user – a


driver pumping the LPG at a filling station – may not 

conform to the requirements, or conform to them, but 

regardless of it may still cause problems with engine 

operation and fuel supply system. 

Production of LPG 

The probability of LPG contamination at the primary 

production stage is small for the stream made 

from natural gas and large for the C3-C4 stream made 

during the process of crude oil refining. C3-C4 fractions 

made both during distillation of crude oil and refining 

processes are subject to cleaning, which should 

remove chemical impurities in the final process. It is 

not possible though to rule out that due to a breakdown 

or faulty operation of cleaning installation some 

amounts of chemical impurities may be included in 

the final product, deteriorating its properties (corrosive 

effect on copper). Similarly, it is also not possible 

to rule out that some LPG batches which include substantial 

amounts of impurities reach the market. One of 

the sources of impurities are refining processes – apart 

from distillation of crude oil there are fourteen different 

processes in which C3-C4 gas stream is obtained as 

a side effect. Among them, the following are potentially 

harmful in case of insufficient cleaning: 

Catalytic reforming Ammonia and chlorides 

Product 

desulfurization 

Amines 

Alkylation Fluorides 

Ether synthesis: Oxygen compounds 

Refining with hydrogen(hydro-desulfurization,hydro-deoxidation, 

hydro-denitriding 

Hydrogen sulfide, ammonia, 

water 


83

84 

The refining stream, which must not be referred 

to the general gas stream of C3-C4 gases destined for 

sale, contains fluorides which have very strong corrosive 

effect. In Europe the above issue is highly neglected 

in comparison with the regulations in Australia. 

The Australian specification for LPG, as the only one 

in the world, determines requirements (very strict) for 

fluoride content in LPG, even though in this country 

only 20% of produced C3-C4 fraction originates from 

processing of crude oil. In Poland the content of fluorides 

is determined only when it is required by the 

commercial contract stipulations, therefore, it cannot 

be ruled out that supplies including fluorides are imported 

to Poland. 


Transport 


LPG is transported in domestic conditions to large 

storage terminals and partially also to large recipients 

in liquid form by sea tankers, the so-called LPG ships, 

and by railway tankers. At this phase of the distribution 

chain it is very easy to contaminate transported fuel 

which fulfills the requirements at the stage of loading. 

It must be remembered that in respect of transport, 

the term LPG is understood in the world as both pure 

propane (or butane) as well as mixtures with butane or 

mixture of C3-C4 gases. 

The construction of specialized ships for LPG transport 

– the gas tankers – makes it possible that an LPG 

ship may also carry liquid ammonia and liquid chlorine 

in the same tanks. It frequently happens that a supply of 

LPG may be contaminated with residue from the tanks 

which formerly contained completely different goods. 

Unfortunately, both chlorine and ammonia act corrosively 

to copper, which spoils the quality of transported 

fuel. In previous years gas tankers for transport of LPG 

and LNG had different tank installation construction 

which rendered it impossible to transport both fuels in 

the same tanks on a gas ship. At present, the progress in 

construction of tank installations on gas ships results in 

a situation when some of them may carry interchangeably 

both LPG and LNG, e.g. the first Polish gas ship ‘Coral 

Methane’ launched in 2008 may carry LPG, LNG and 

ethylene. In adverse conditions, the LPG cargo can be 

contaminated with methane originating from the LPG 

from previously carried batch, which lowers its quality. 

Also, the sea cargo should always be examined for 

presence of ammonia, as liquid ammonia may be transported 

in the same tanks. Due to very high capacity of 

tanks, which for transocean gas ships amounts to 8000 

to 600 000 barrels, prior to loading of the cargo it should 

also be checked if the previously transported cargo of 

LPG fulfilled the requirements of specifications so as its 

residues would not deteriorate the quality of the new 

supply. Transported cargo may also be contaminated 

with tank cleaning agents. Due to large volumes of the 

sea cargo it is a good practice to execute, as a standard, 

quantitative analysis of the contents of ammonia, sulfur 

compounds, water and fluorides. Standard specification 

concerns only marking of the sulfur content and qualitative 

tests for the presence of water and hydrogen sulfide 

and marking of the corrosive effect on copper does not 

provide information concerning the reason of corrosion 

appearance, i.e. identification of impurities with corrosive 

reaction. Unloading of a ship takes about 20 hours, 

so there is time to execute extended tests. In case of the 

LPG cargo in tanks, their construction renders it possible 

to transport also ammonia, chlorine or ethylene in them, 

that is why particular attention has to be paid to the ‘history’ 

of a tanker – i.e. what she has transported so far.


Storage tanks and tanks 

at petrol stations 

Stored LPG may contain water both diluted and 

free, which accumulates at the bottom of tanks and 

containers and in pipelines. This water originates from 

condensation of water steam, rain and snow penetrating 

the tanks while they are open e.g. during overhauls 

and cleaning, from open connecting hose bits, etc. It is 

necessary to drain tanks, dry the LPG or apply ethanol 

injections as the means to prevent water crystal formation. 

The application of methanol has to be denoted 

in order to avoid its overdosing due to consecutive 

methanol injections in further links of the distribution 

chain as overdosing deteriorates the LPG quality. The 

presence of water in which chemical impurities in LPG 

may dissolve results in hydrolysis and also in initiation 

of chemical reactions and formation of synergy effects 

between the impurities, which results in formation of 

substances featuring corrosive reaction on copper. 

At petrol stations, LPG may undergo secondary 

contamination with water, plasticizers extracted from 

plastic hoses, rust, sludge, sand and metal chips of 

equipment. 

The LPG distribution chain is burdened with two 

problems which do not appear in distribution chains 

of petrol and diesel oil: 

1) chemical instability of chemical impurities in LPG, 

appearing especially in case of contamination of fuel 

with water. In case of watering of the batch of ‘classic’ 

liquid fuels, the presence of water does not cause 

initiating of any chemical processes in the fuel which 

deteriorate its quality – water is either suspended in 

fuel or forms a layer at the bottom of a tank. In case of 

LPG, the presence of water initiates hydrolysis which 

leads to radical deterioration of corrosive effect of the 

fuel on copper; 


8

86 

Carbonyl sulfide COS 

a) watering in the distribution chain of an LPG batch 

including carbonyl sulfide, elemental sulfur or carbon 

disulfide, (which alone do not react corrosively on copper) 

leads to their hydrolysis and formation of hydrogen 

sulfide, the effect of which may be strongly corrosive. It 

has to be noticed that – according to the specification 

PN-EN 589 – LPG may contain sulfur amounting up to 

50 mg/kg, however, when determining the hydrogen 

sulfide presence by the method of lead acetate (the 

method indicated in the LPG specification) it is possible 

only at its concentration over 4 mg/kg at gaseous 

phase). Meanwhile, hydrogen sulfide reacts corrosively 

already in concentration of 2 mg/kg! 



Table 4. 

List of literature data concerning additional requirements 

for LPG in respect of content of chemical impurities 

Impurity Permissible contents 

Sulfur and its compounds: 

Elemental sulfur maximum 0.4 mg/kg 

Hydrogen sulfide H2S none 

Non hydrocarbon gases: 

Ammonia maximum 1 mg/kg 

Fluorides maximum 1 mg/kg 

Carbon dioxide CO2 maximum 1000 mg/kg 

Nitrogen mark, present result 

Oxygen compounds, including: maximum 50 mg/kg 

MTBE and other ethers maximum 2.0 mg/kg 

Methanol maximum 50 mg/kg 

Isopropyl alcohol and higher alcohols maximum 5.0 mg/kg 

Other oxygen compounds maximum 2.0 mg/kg 

Corrosion inhibitors or passivators of metals maximum 1 mg/lg 

Other impurities (chlorides, glycols, amines) maximum 1 mg/kg 

maximum 1 mg/kg or 2 mg/kg (depending on a literature 

source) 

2) large diversity of imported and domestic 

batches in respect of applied corrosion inhibitors, 

mixing within the distribution chain of LPG batches 

coming from different sources and being products 

of different processes. Batches of the LPG separately 

fulfill requirements of specifications in respect 

of corrosive properties but after mixing in a common 

tank, the obtained product may not fulfill the 

requirements; 

a) when one batch includes small amount of hydrogen 

sulfide and the second one – coming from 

an entirely different source – small amount of elemental 

sulfur (both batches fulfill specification re-


Table 5. Results of systematic LPG quality inspection executed 

in Poland by the Commercial Inspectorate at petrol 

stations and wholesalers’ in years 2007-2010* 

Year of inspection 2010 2009 2008 2007 

Number of examined samples 465 847 1399 330 

Number of samples which do not meet 

requirements 

quirements in respect of corrosive properties). After 

mixing them, the LPG has strong corrosive effect 

in the result of synergic effects between the above 

mentioned sulfur forms; 

b) problems with corrosion result also from the 

fact of mixing supplies of the LPG in which the specification 

requirements concerning corrosive properties 

were obtained in different ways, often not by 

application of relevant production processes but exclusively 

by addition of polar corrosion inhibitors for 

passivation of copper surface and in this way preventing 

the occurrence of corrosion (thus masking 

only the result without eradication of the cause) 

19 10 68 29 

Number of voivodships 16 16 16 only 9 

% of samples which do not meet requirements 

(in total) 

4.1 1.2 4.9 8.8 

At stations selected at random 15 out of 403 = 3.7% 5 out of 645 = 0.8% 34 out of 585 = 5.8% 25 out of 316 = 7.9% 

At stations pointed out by customers as 

suspected of selling poor quality fuel 

3 out of 46 = 6.5% 5 out of 196 = 2.4% 31 out of 775 = 4% 

At wholesalers/fuel distributors 1 out of 16 = 6.2% 0 out of 6 = 0% 3 out of 39 = 7.7% 4 out of 14 = 28.6% 

Questioned quality parameters – number of samples which do not meet requirements in this respect: 

• engine octane number 

0 1 4 0 

• temperature in which relative vapor 

pressure is lower than 150 kPa 

2 2 9 10 

• odour 

1 0 5 0 

Qualitative parameters related to impurities, including: 

• sulfur content 

7 3 5 13 

• corrosive action on copper 

10 5 43 4 

• presence of hydrogen sulfide 

1 0 0 0 

* On the basis of Annual Reports of the President of UOKIK, fuel quality monitoring in Poland. 

or so-called sulfide scavengers – compounds which 

chemically bind hydrogen sulfide and mercaptans 

(chemical compounds formed in the result of chemical 

reaction and the remaining unbound sulfur compounds 

also remain in the LPG). The amount of inhibitors 

is selected individually for a particular batch 

of LPG. When it is mixed in a storage tank with another 

LPG batch which does not include corrosion 

inhibitor (because it has good corrosive properties) 

concentration of inhibitor in the LPG drops below 

the level which secures protection against corrosion 

and the whole volume of the tank may not fulfill requirements 

in respect of corrosive effect on copper. 


87

88 

The following conclusion can be drawn out of 

the literature review made at the Oil and Gas Institute, 

especially of the American sources: LPG of 

good quality which does not act corrosively on copper 

is the fuel which fulfills several additional requirements 

in respect of chemical impurities (influence 

of these impurities on fuel quality is presented 

in Table 3). 

After reading the above description of potential 

hazards one may get the impression that LPG is a fuel 

featuring very poor quality, with negative effect on 

engines and fuel supply systems. Of course, it is not 

the case now – but it used to be. In majority of the European 

countries relevant control entities do not run 

monitoring of LPG. Therefore also in Poland for a long 

time the initiative of implementing quality monitoring 

of LPG at petrol stations was rejected by the LPG 

sector. Pilot controls of LPG executed in 2004 by Commercial 

Inspectorate in order to determine the facts 

revealed though, that the percentage of LPG samples 

which did not fulfill quality requirements amounted 

to as much as 41.66%! A decision was made to take up 

legislative works concerning a new act on the system 

of monitoring and fuel quality control, including LPG 

(it came into force in 2007) and starting selective control 

measures in August 2006. 

Before 2006, due to lack of any control from the 

Commercial Inspectorate, the basic criterion of importing 

a commodity which reached the market as 

LPG was the price. At that time, the strangest possible 

fractions of C3-C4 reached the market: contaminated, 

watered, including large contents of sulfur 

and acting corrosively on copper – but cheap. A very 

common, illegal practice was also to buy fractions 

of C3-C4 for heating purposes (with no excise tax) 

and pumping it to tanks at petrol stations in order 

to sell it later as engine fuel. There were even situations 

that such illegal ‘pouring in’ caused explosions 

at the stations. After implementation of inspection, 

the quality of LPG rapidly improved – identical situation 

was three years earlier during implementation 

of the system of monitoring and quality inspection 

of petrol and diesel oil. It must be remembered, 

though, that the Commercial Inspectorate verifies 

the quality of LPG only in respect of requirements of 

the obligatory specification and its fulfillment – due 

to described above reasons – does not guarantee 

safe use in a vehicle. 

Table 5 presents the results of systematic inspection 

of LPG quality executed in Poland by the Commercial 

Inspectorate at petrol stations and wholesalers’ 

in years 2007-2010. 

In the years 2007-2009, the quality of LPG was 

improving systematically, however, last year again, it 

slightly deteriorated, returning to the level close to 



the one in 2008. If distribution of instants exceeding 

the parameters is analyzed, it can be noticed 

that the number of cases exceeding the qualitative 

parameters resulting from incorrect hydrocarbon 

composition in LPG has been decreasing systematically, 

i.e. engine octane number and temperature in 

which relative vapor pressure is lower than 150 kPa. 

However, sulfur content, the presence of hydrogen 

sulfide and corrosive action on copper, i.e. the 

parameters resulting from the presence of chemical 

impurities have a rising tendency again, which 

proves the presence of contaminated LPG batches 

in the market. At any moment, the results of LPG inspection 

are expected to be published by the President 

of UOKIK (Competition and Customer Protection 

Office) concerning the first half of the year 2011. 

Then, it will be possible to determine whether the 

drop in LPG quality was temporary only or if it has 

had the tendency of further deterioration. 

Summary 

It is necessary to execute some additional tests in 

the distribution chain reaching beyond the specification 

obligatory for LPG, both in respect of identification 

of sulfur compounds appearing in fuel (and not 

only their quantitative marking) and in respect of the 

content of other chemical impurities which have influence 

on the result of marking the corrosive properties 

for copper. Due to specificity of LPG, the issues 

concerning inspection of water content and application 

of procedures of dehydration and drying of LPG 

play the key role in ensuring the quality. Then the 

probability that the fuel of really good quality reaches 

the end user increases substantially. However, these 

actions cannot eradicate completely the problems 

resulting from the appearance of LPG batches in the 

distribution chain in which corrosion protection has 

been accomplished not by depriving the fuel of sulfur 

compounds but by addition of corrosion inhibitor. 

In spite of this, the quality of LPG in the domestic 

market is not bad in comparison with petrol and diesel 

oil – in 2010 the requirements were not fulfilled 

in 4.1% of taken LPG samples (out of 465), while for 

petrol – in 6.62% samples (out of 552 samples) and for 

diesel oil – 4.67% samples (out of 624) 2 . 

The author is the Head of Oil Analysis 

Department at the Oil and Gas Institute in 

Krakow 

2 The results of fuel quality control executed by the Commerce Inspectorate 

in 2010, Report by UOKIK, Warsaw, March 2011

90 

For good recognition and later depletion, it is necessary, 

in the fi rst place, to work out research 

methods, and then technology which will be useful in 

unconventional deposit extraction. 

According to calculations of Energy Information 

Administration, extraction of gas from shale by the year 

2030 will amount to 7% of the world production of natural 

gas. According to estimates by Wood Mackenzie, 

in Poland may exist extractable resources of shale gas 

reaching 1.4 billion m3 , while Advanced Resources International 

assess that the deposits may even amount 

to 3 billion m3 , and the recent fi ndings of 8.04.2011 

from the same source report volumes estimated at 

even 5 billion m3 [7, 6]. 

The actual information on the real resource 

amount will probably be available in 4-5 years, when 

prospecting works are executed and deposit is identified 

as a result of over 60 concessions granted by the 

Ministry of Environment, dedicated to hydrocarbon 

acquisition from shale gas deposits. The prospecting 

area covers 11% of the area of Poland, i.e. 37 000 km2 . 

Deposits of the Polish shale gas, according to publications 

that appeared so far, may be situated in the 

region from the coast between Słupsk and Gdańsk, 

towards Warsaw, and may reach as far as Lublin and 

Zamość. Such distribution was determined on the basis 

of the knowledge about the distribution of Silurian 

deposits which are treated as the main potential 



Shale gas in Poland 

The new challenge for gas 

deposit prospecting 

IRENA MATYASIK 

The interest in shale gas was raised in Poland due to the worldwide craze, 

which the chief geologist of the country, Henryk Jacek Jezierski, calls the 

gold rush of the 21 st century. Facing the depletion of hydrocarbon reserves 

in Poland, as well as shrinking possibilities of indicating new prospecting 

areas, the partly known and partly used potential is willingly being reached 

for, with resources still to be extracted and not even estimated in detail yet. 

source for shale gas which fulfills the geological and 

geochemical criteria. 

The factors which indicate economic profi tability 

of shale gas extraction may be summed up in a few 

items: 

• Signifi cant progress has been made in horizontal 

drilling, 

• very fast development of new technologies in hydraulic 

fracturing, 

• 

increased gas prices with shrinking resources of 

natural gas from conventional deposits. 

Research work directed at recognition of the possibilities 

of the occurrence of shale rich in organic 

substance which would reveal the features of adsorbed 

hydrocarbons have been conducted by the 

Oil and Gas Institute for two years, both on the old 

core material and newly drilled boreholes in search 

of shale gas. 

Technologies concerning gas extraction are off ered 

by the American companies which very expansively 

enter the Polish market and hold many concessions for 

shale gas prospecting. However, still, in spite of published 

reports by the Energy Information Agency related 

to affl uence of the basins containing shale gas in 

Poland, the information is not based on reliable parameters 

and calculations, but merely estimates made on 

the basis of archival data. In order to make the informa-


tion credible, additional research and calculations are 

needed in respect of shale gas [7, 8]. 

Specificity of unconventional 

gas deposits 

The common feature of “shale gas” and “tight gas” 

and also one which makes them different from conventional 

natural gas accumulation is lack of idiopathic 

gas influx to the borehole in volumes which would 

make the extraction by traditional methods economically 

justified. 

Silt and argillaceous layers contain “shale gas” in micro-pores, 

among the lamina rich in detritic components, 

and also in natural fractures and micro cracks. 

Natural gas in shale is also absorbed by insoluble organic 

substance and by argillaceous minerals. Complexes 

of this type create specific hydrocarbon system 

in which the same rock formation is also the matrix 

(source rock), sealing and collector, and hydrocarbon 

migration occurs only in micro scale [3, 5]. The comparison 

of various types of reservoir rock with various 

types of deposits, both conventional and unconventional 

are presented in diagrams in Fig. 1-3. 

Shale gas belongs to the so-called continuous accumulation, 

of large extension in space, in rocks characterized 

by low permeability (Fig. 3) and presence of 

natural cracks. Production life of such unconventional 

deposits is estimated at 20-30 years. 

The deposits are called unconventional, because 

gas may be connected with organic matter but not absorbed 

by it. Shale gas may also be located in thin layers 

of porous silt and in sandstone interstratified shale 

series. In such cases, gas is categorized as free gas extracted 

along with absorbed gas. 

The significance of unconventional gas in the world 

is systematically rising. In the USA – the country of best 

developed oil industry oriented at unconventional 

sources of hydrocarbons – the resources contained in 

shale were estimated at 5-10% of total extractable natural 

gas resources, but continuous discoveries make 

that percentage likely to become higher soon. Shale 

gas extraction in 1996 was 8.5 bn Nm 3 , and in 2006 already 

nearly three times more. 

Apart from the American companies, only a few 

huge international concerns, like BP, Total or Schlumberger 

are able to extract this type of deposits effectively 

[2, 3]. Lack of a larger number of those willing 

to do so results from very expensive, demanding, substantial 

technological advancement, horizontal drilling 

at great depths (frequently exceeding 3 km) and complicated 

and costly technologies of hydraulic fracturing 

of the rock mass (creating artificial cracks) which consist 

in making a network of cracks spreading concentrically 

from the borehole even up to 900 m in order to 

link the largest possible area of rock with the well. 

In Poland, more and more frequent is the discussion 

on prospecting of shale gas, which has even gained a 

Polish name. However, before the specialists set about 

regular extraction, the whole geological, geochemi- 

Fig. 1. Porous rock which usually contains gas in conventional 

deposits 

Fig. 2. Rock with micro-pores, characteristic of “tight gas” 

deposits 

Fig. 3. An example of rock with nanoporosity with gas adsorbed 

on particles of organic matter (shale gas) 


91

92 

cal, engineering and deposit basis should be prepared, 

which will allow to assess the prospecting and extraction 

risk. This requires interdisciplinary action, both related 

to initial research and result interpretation, and 

later engineering decisions. 

Possibilities of occurrence of unconventional 

natural gas deposits in Poland and 

criteria for assessment of its resources 

The areas with the biggest potential for shale gas 

occurrence in Poland, of large thickness and thermal 

maturity are connected with Paleozoic Ordovician and 

Silurian deposits in basins of the Baltic and Lublin-Podlasie. 

Hence the interest in Poland, which – as Paweł 

Poprawa from the National Geological Institute claims 



Fig. 4. Map of thermal maturity (in the scale of vitrinite reflectance % VRo) of Lower Silurian deposits (Llandovery) on the 

western slope of the East-European craton (Poprawa, 2008) [4]. 

– has quite immense exploration potential, maybe even 

the largest in Europe [4]. The black shale here occurs at 

depths from 500 to 4000 m in several sedimentation 

basins: 

• the Baltic basin (the Baltic Syneclise) – Ordovian 

and Silurian deposits; 

• Lublin-Podlasie basin – Ordovian and Silurian 

deposits; 

• Lesser Poland block – Ordovian and Silurian 

deposits; 

• Subcarpathian sink – Miocene deposits; 

• Greater Poland area – Carbonian deposits. 

Preliminary reconnaissance was conducted in these 

regions with reference to the content of organic substance 

and extent of thermal maturity (Fig. 4) [4] which 

play a vital role in the selection of sweet spot for shale 

gas. So far, all the estimates have been made on the basis 

of archival data; now they will require more detailed


Thickness 

Mineralogy 

Pressure 

Thermal 

transformation 

Brittleness 

Natural 

fissures 

Free 

gas 

Decisive 

elaboration, based on the actual tests on samples both 

from the archive and from newly drilled wells. 

The accumulation and extraction of shale gas, besides 

the geochemical criteria, are limited by: lithographic 

variability of the deposits in the borehole 

profiles, their hydration and also tectonic condition 

of the territory. The elements which should be taken 

into consideration in assessment of the possibilities 

and profitability of extraction of unconventional gas 

deposits can be divided into four main categories according 

to their importance – each of them refers to 

another set of necessary information. Fig. 5 shows a list 

of vital information in assessment of shale gas deposits. 

The diagram presents how essential are interdisciplinary 

activities and application of various laboratory 

tests – some of them may be adapted based on the 

tests which have been carried out for conventional deposits 

of natural gas, while some require certain modification 

resulting from the specificity of shale gas. 

Matrix 

permeability 

Make the 

venture possible 

Important Significant 

Depth 

Gaz 

'in situ' 

Gas 

extraction now 

Zasobność OM 

Water 

resources 

Adsorbed gas 

Kerogen type 

Fracturing 

possibilities 

Stress 

expertise 

Shale 

properties 

Known 

geological risk 

Fig. 5. Elements of technical description in unconventional gas prospecting which should be considered according to 

their importance (George E. King, Apache) [1] 

The complete set of tests should provide the assessment 

of the so-called prospecting risk which – according 

to the American experience – may be discussed in 

four categories: geochemical, geological, petrophysical 

and related to the resources. 

Using all the available geochemical data from the 

archive, with their interpretation, should lead to minimization 

of prospecting risk in the planned borehole. 

Subsequently, the data should be integrated with geological, 

petrophysical and deposit engineering information 

and obviously they should consider the logistic 

conditions. These criteria for designating lithostratigraphic 

complexes, potentially containing natural gas 

deposits of the shale gas character and cost-effective 

resources are described in literature [3]. The commonly 

adopted form of risk assessment are radar charts presenting 

particular information categories. 

When assessing the risk in prospecting, the geological 

information should first of all take into account 


93

94 

Fig. 6. Geochemical criteria for assessment of prospecting risk for shale gas 

deposits 

Fig. 7. Geological criteria for risk assessment in prospecting for shale gas 

deposits 

Fig. 8. Petrophysical criteria for risk assessment in prospecting for shale gas 

type deposits 



the thickness of the matrix facies, 

the depth of plunging and also the 

record of gamma radiation and resistance 

(Fig. 7). 

Very important for the economical 

assessment of the prospecting undertaking 

are the criteria for petrophysical 

properties of the rock. They involve 

both mineralogical features which are 

vital in projects of hydraulic fracturing 

and properties referring to the reservoir, 

i.e. porosity, permeability and 

pore space volume occupied by particular 

media (Fig. 8). 

The largest production from the 

Barnett shale is obtained from the 

areas containing 45% of quartz and 

only 27% of argillaceous minerals [3]. 

Brittleness of shale, i.e. susceptibility 

to fracturing is the basic parameter 

which describes the conditions 

of stimulating the inflow from the 

borehole. This feature makes it possible 

to create an appropriate number 

of cracks in the borehole, forming a 

network of micro-pores filled with 

gas. On the other hand, carbonate 

cementation may reduce the capacity 

of already existing fractures. The 

presence of large volumes of carbonates 

and swelling argillaceous minerals 

increases the risk of shale gas 

prospecting. 

Another criterion which should be 

considered in the assessment of prospecting 

risk in case of shale gas systems, 

concerns the calculation of the 

resource volume, taking into account 

the adsorption abilities of a specific 

formation, the extent of gas recovery 

in relation to known abundance of 

organic substance. Such calculations 

supported by desorption experiments 

on real samples from Barnett shale 

were performed and on the basis of 

obtained results diagrams of risk assessment 

were prepared. 

For each oil basin covered with 

shale gas prospecting such prospecting 

risk assessment should be considered 

in presented categories. The 

borderline values in diagrams were 

connected with one line; the basins 

with the lowest prospecting risk 

should be characterized by a line sit-


uated outside the outlines presented in particular 

diagrams. 

Integration of all the obtained results of laboratory 

tests allows to present the balance of pore space volumes, 

assess the amount of free and adsorbed gas in 

the pore space and it constitutes the basis for preparing 

potential extraction projects. However, it requires 

the assessment of the possibility of gas transportation 

to the well, and in particular: 

• finding whether the examined deposits contain 

natural crack systems (if present, their permeability 

should be assessed), 

• assessment of the pore space structure, 

• designation of their micro-permeability. 

The last stage is the analysis of extraction possibilities 

based on geomechanical examination of the cores, 

which provides the grounds for making fracturing 

treatment projects. 

The author is a researcher 

at the Oil and Gas Institute 

Literature: 

1) 

2) 

3) 

4) 

5) 

6) 

7) 

8) 

King G. E., Apache Corporation, “Thirty Years of Gas Shale Fracturing: 

What Have We Learned?”, prepared for the SPE Annual Technical 

Conference and Exhibition (SPE 133456), Florence, Italy, (September 

2010); and U.S. Department of Energy, DOE’s Early Investment in 

Shale Gas Technology Producing Results Today, (February 2011), web 

site http://www.netl.doe.gov/publications/press/2011/11008-DOE_ 

Shale_Gas_Research_Producing_R.html 

Hill R. J., Jarvie D.M., Pollastro R.,M., Mitchel H., King J.D., 2007. Oil and 

gas geochemistry and petroleum systems of the Fort Worth Basin. 

AAPG Bull, Vol. 91, No.4, pp. 437- 444. 

Jarvie D.M., 2008. Unconventional shale resource plays: shale-gas and 

shale-oil opportunities. Fort Worth Business Press Meeting, June19. 

Marble W., 2006, Attributes of a successful unconventional gas 

project: 8th Annual Unconventional Gas Conference, Calgary, 2006. 

Poprawa. P., 2010. Shale gas potential of the Lower Paleozoic 

Complex in the Baltic Basin and Lublin-Podlasie Basin (Poland). 

Geological Review, 58, 226-249. 

Rodriguez Maiz N.D.; Paul Philip R., 2009. Geochemical 

characterization of gases from the Barnett Shale, Fort Worth Basin, 

Texas. AAPG Bulletin. 

Schmoker J.W., 2002. Resource assessment perspectives for 

unconventional gas system: AAPG Bulletin vol. 86, p.1993-1999. 

www.energy.gov.ab.ca › ... › About Natural Gas, September 2009. 

www.barnettshalenews.comm/documents/dan_jarvie.pdf 


9

96 

History 

Oil and Gas Exploration Company Cracow Ltd. 

(OGEC Cracow Ltd.), which belongs to the PGNiG Capital 

Group, celebrates its 65th anniversary this year, 

however it does not mean the slower pace of expansion 

in the drilling services market. Just the opposite. 

With the news about the potential existence of substantial 

shale gas deposits on the territory of Poland, 

the qualifi ed team of specialists from OGEC Cracow 

Ltd. began their preparations for the intensifi ed drilling 

works. 

OGEC Cracow Ltd. is a provider of diversifi ed contract 

drilling services for the oil and gas industry. Currently 

the company employs around 1400 people 

in total, domestically and abroad. Since June 1998, 

OGEC Cracow Ltd. operates as a separate legal entity 

within Polish Oil & Gas Company (PGNiG Capital 

Group), the largest and only vertically integrated company 

in the gas sector in Poland. 

Markets 

OGEC Cracow Ltd. renders its services in the markets 

of Central Europe, Asia and Africa. The company 

has its branches situated in: 

• 

• 

• 

Kazakhstan, 

Pakistan, 

Uganda. 

The company also has two dependent entities: Oil- 

Tech International FZE registered in the United Arab 

Emirates and Poltava Services LLC with its main offi ce 

in Ukraine. 



Oil and Gas Exploration 

Company Cracow Ltd. aims at 

shale gas 

Drilling Rigs 

The machinery fl eet owned by OGEC Cracow Ltd. 

consists of 13 drilling rigs capable of performing vertical, 

horizontal and directional boreholes. Moreover, the 

company leases 1 drilling rig in Kazakhstan (H-1000).


What is important is the fact that as many as 5 out 

of 13 rigs owned presently by OGEC are equipped with 

Top Drive system which enables performing more complicated 

boreholes while minimizing the costs, and 

also increasing the efficiency of exploration works. 

Services 

Drilling rigs owned by Oil and Gas Exploration Company Cracow Ltd. 

Type of drilling rig 

Hook load capacity 

[t] 

OGEC Cracow Ltd. offers to its clients services encompassing 

geological, exploratory, extraction and 

hydrogeological drilling, as well as specialized services 

connected with drilling boreholes and their reconstruction. 

They cover the following: 

• 

• 

• 

• 

• 

• 

Number Location 

National 1625-3* 610 1 Kazakhstan 

Mid Continent U-1220-EB* 725 1 Kazakhstan 

IRI 1700* 350 1 Pakistan 

Skytop Brewster N-75 250 

1 Ukraine 

1 Poland* 

Skytop Brewster TR-800 185 1 Poland 

Kremco K-900* 165 1 Uganda 

IRI 750 135 1 Uganda 

Skytop Brewster RR-650 125 1 Poland 

Skytop Brewster RR-600 125 

1 Pakistan 

1 Uganda 

Cooper LTO-550 110 1 Poland 

Kremco K-600 105 1 Poland 

* Drilling rigs equipped with Top Drive system 

Total number 13 

Directional drilling service, 

Mud service, 

DST (drill stem test) service, 

Cementing service, 

CBM (coal bed methane) drilling, 

Geothermal drilling. 

The Company also owns the Training and Qualification 

Development Centre for Oil and Gas 

Production which was granted accreditation of 

prestigious international organizations IWCF (International 

Well Control Forum) and IADC (International 

Association of Drilling Contractors) Well Cap 

Commission. 


97

98 

DRILLING RIG DRILLMEC 

BASIC SPECIFICATION 

Type 2000 HP Land Rig 

Rating 2000 HP 

Maximum drilling depth 7500 m 

Production year 2011 

DRAWORKS 

Horse power rating 2000 HP 



Driven by 2 x AC Electric Motor 1150 HP each 

MAST 

Height 156 ft 

Load on hook 1.300.000 lbs 

SUBSTRUCTURE 

Height 30 ft 

Walking system Hydraulic 

Catwalk fully hydraulic 

ROTARY EQUIPMENT 

Rotary table opening 37-1/2” 

Swivel capacity 500T 

Top drive NOV TDS-11SA AC Drive 

Iron roughneck Drillmec PCT-130 z HPU 

TRAVELING EQUIPMENT 

Hook capacity 500T 

DRIVE 

Type of engine Caterpillar Diesel Engine 

Horse power rating 5 x CAT 3512C rated 1.476 HP @ 1200 rpm 

MUD SYSTEM 

Type of drilling fluid pumps 3 x Drillmec 12T1600 

Horse power rating 1600 HP 

Shale shaker 2 x Derrick FLC 514 

Mud cleaner 1 x 3 w 1 Derrick FLC 514 

Degasser 1 x Derrick ADG-1500 degasser with centrifuge 

Mud agitators 9 x 30 HP 

Mud hoppers 2 x 6” 

Capacity of mud system 2.260 bbls 

Mud tanks 5 x tanks 

DRILLER`S CABIN Auto Driller


Quality Standards and HSE 

The services rendered by OGEC Cracow meet 

the world quality standards, maintaining the workers 

safety and respecting the natural environment 

and the local cultures and communities. With years, 

the company effectively implemented many programmes 

related to the topic of health, hygiene 

and work safety: Job Safety Analysis (JSA), Material 

Safety Data Sheet (MSDS), Health, Safety and 

Environment (HSE), System of Management of 

Work Safety and Hygiene and Environment Protection; 

STOP – Safety Training Observation Program. 

These standards are subject to processes of systematic 

verification and improvement. 

OGEC Cracow Ltd. acts according to the policy 

of Integrated Management System, based on 

standards: ISO 9001:2008, ISO 14001:2004 and 

OHSAS 18001:2007, whose certifying company was 

Bureau Veritas Certification. 

Chances for shale gas 

By May 2011, 87 concessions for unconventional 

gas exploration were issued in Poland and they 

cover the area of over 50 thousand km 2 . About 20 

companies were granted these concessions. It is 

assumed that in the nearest 2-3 years Polish service 

companies from the oil and gas sector will hold 

contracts for drilling about 120 boreholes. The results 

of the works will allow to evaluate the commercial 

value of shale gas deposits hidden in the 

Polish sedimentary shale. 

If the forecasts confirm the presence of substantial 

deposits of unconventional gas on the 

territory of Poland, the companies which supply 

the drilling services will be able to count on 

signing profitable contracts with operators holding 

concessions for shale gas exploration. In order 

to bring closer the achievement of this goal, 

OGEC Cracow Ltd. took decisive preparatory 

steps. One of them is the purchase of DRILLMEC, 

a high-tech 2000 HP drilling rig equipped with 

Walking System which will be available in the 

third quarter of this year. The new rig will also 

be equipped with Top Drive system, Automated 

Catwalk and Iron Roughneck. The most essential 

advantages of these functions and systems 

which are of great importance for the drilling 

projects are: reduced mobilization time of the 

drilling rig, improved well control, considerably 

higher safety of work and optimization of costs 

of the drilling project. 

Walking System ensures simple rig move to another 

location, which is especially useful in implementation 

of projects related to the need for drilling 

in a location with multiple wells nearby, e.g. in 

projects connected with shale gas extraction. This 

system eliminates the need of disassembly, traditional 

transport and then reassembly of the rig on 

the next well site when moving the rig between 

the locations, which significantly reduces the time 

necessary for its transport. The rig is moved using 

means of hydraulic drive “feet”, which in a safe and 

controlled manner lift and move the drilling unit 

to another location with full precision, maintaining 

stability of construction at the same time. 

The Automated Catwalk mechanism ensures 

better efficiency, safety and reliability in handling 

tubulars – drill pipes, drill collars and casing from 

the pipe racks to the rig floor. This mechanism eliminates 

the need for manual handling of tubulars. Remote 

control enables to operate the unit from the 

level of the rig floor as well as from the level of the 

ground. A hydraulic hoisting winch lifts tubulars to 

the level of the rig floor at appropriate angle and at 

specified height, that facilitates safe and effective 

transfer of the drill string to the elevator. The time 

of the cycle of transporting the drill string from the 

catwalk to the rig floor or from the rig floor to the 

catwalk is less than 20 seconds. 

NOV TDS-11SAT Top Drive System rotates the 

drill string and enables drilling with the use of 

three pieces of the string at the same time, ensuring 

maximal torque and rotation control. The use of 

top drive accelerates the drilling process, positively 

affecting safety standards and also reduces the 

risk and frequency of stuck of the drill pipes, which 

might occur. 

The rig is equipped with Iron Roughneck which 

is used to connect and disconnect the drill string. 

This tong consists of spinning system and separate 

hydraulic power unit 400V/50Hz. The process 

of making up the string is almost completely automated, 

the driller operates the iron roughneck using 

remote control, which increases effectiveness 

and safety of work. Higher speed of making up the 

string reduces the risk of errors and damage, and 

also increases the economic effectiveness of the 

whole operation. 

Many years of experience in drilling business 

that OGEC can boast, highly qualified staff, innovative 

drilling equipment and impeccable reputation 

are undoubtedly assets which, facing the chances 

related to the potential occurrence of shale gas on 

the territory of Poland will aid the company in its 

expansive development both in the domestic and 

international market. 


99

100 

Continuous monitoring of gas odorizing process 

is secured by devices working in a continuous 

operation system (e.g. on-line analyzers). Their great 

merit is full cooperation with telemetric systems providing 

the possibility of remote transmission of measurement 

data, as well as remote feeding of operational 

parameters from any computer. 

At present, three parallel methods of measuring 

condensation of odorizing agent in gas have found 

common application. They comprise measurements 

taken directly at sampling site with application of mobile 

analyzers, on-line measurements taken by process 

stationary devices as well as laboratory measurements 

executed on gas samples taken from the gas network. 

Introduction of the process chromatographic THT analyzers 

into the monitoring system of gas odorizing allows 

to create extended control network, execution of 

systematic, current, documented and remotely controlled 

measurements as well as diminish the number 

of laboratory measurements in a particular region of 

odorizing. 

Facing the changes occurring in procedures of 

measurements and principles of balancing concentration 

of odorizing agents in gas fuels, the signifi cance of 

devices operating on-line is growing continually. Development 

in technology and requirements concerning 

the quality of control of gas fuel odorizing, which 

are becoming more restrictive, generate growing de- 



The ANAT-M device in automated systems to control gas fuel odorizing in Poland 

On-line monitoring 

PHD ANNA HUSZAŁ 

Proper and systematic control of gas odorizing is the basic condition of securing 

continuity in this process. It is executed, among other things, by measurements 

of concentration of odorizing agent in gas. It is a signifi cant and inseparable 

element of checking the level of gas fuel odorizing whose objective is to 

verify the functioning of odorizing devices by checking the odorant dose and 

also to control the content of gas fuel at any point of gas distribution mains. 

mand for devices dedicated to measurements of concentration 

of odorizing agents in gas adjusted to taking 

process measurements in continuous cycle. There 

is also a need for production of domestic make process 

THT analyzers with the application of gas chromatography 

method. 

In recent years, the units able to work in a facility, 

adjusted to remote and real time transfer of results of 

measurements have been gaining in popularity. Together 

with development of technology and growing 

demands, contemporary control of gas fuel odorizing 

is slowly entering the phase of remote monitoring. 

Creating a system of remote controlling of the level 

of odorizing agent results in large investment costs, 

however reliable and continuous THT concentration 

measurement in gas plays a very important role in supervising 

and controlling the process of odorizing gas 

fuels (it allows to diminish the costs of its use and increase 

effi ciency and reliability of the process). Having 

precise and up-to-date values of THT concentrations is 

necessary both for eff ective controlling of the process 

and its monitoring. It results from the fact that measuring 

devices based on this method can be used for continuous 

monitoring of the operating gas mains. Owing 

to this fact, an operator has almost immediate access 

to current results of measurements and information 

concerning current state of the mains, which facilitates 

and speeds up overhauls.


Photo 1. Analyzer ANAT-M 

Continuous, precise examination of THT concentration 

in gas is particularly important at the stage which 

allows to optimize the process, while the quality and 

reliability of measurements of odorizing agent concentration 

in gas directly translates to the quality of 

odorizing process and its correct execution. 

In relation to measuring devices commonly used 

up till now, innovative character of analyzers taking 

measurements of THT concentration and working online 

at present in facilities depends on the fact that 

they are adjusted to: 

• operate in industrial conditions (at any point of 

the gas distribution mains), at unmanned objects; 

• monitor the gas odorizing system in the 24-hour 

cycle all year round; 

• remotely monitor the device condition and read 

out measuring data from any place in the telemetric 

system or by the Internet (www. site); 

• program the operation of a device according to 

requirements of its user (e.g. frequency of taking 

measurements); 

• change remotely the parameters of operation 

(settings) of devices; 

• remotely update the software; 

• 

• 

transfer the results of THT concentration measurements 

and alarm signals concerning incorrect 

functioning of a device in the telemetric system 

(incorporated auto-diagnosis with information 

about alarm conditions); 

archive the results of measurements of THT concentration 

and parameters of progress of analysis 

in electronic form on a hard drive with the possibility 

of making reports directly on a calculation 

sheet. 

All the above mentioned merits of on-line devices 

render possible quick intervention in case of occurrence 

of incorrect progress of odorizing, which is 

crucial for maintaining public safety in utilizing the 

natural gas, especially in municipal-social sector and 

they allow gas enterprises to document gas odorizing 

effects. 

The market of process analyzers based on gas 

chromatography method which are intended to take 

measurements of odorizing agents concentration in 

gas in a facility, with the possibility of remotely transferring 

the measurement results, is rather poor. The 

gap in devices of this kind has just been filled by the 


101

102 

ANAT-M analyzer in the Polish market, designed on 

the basis of requirements of the domestic gas distribution 

system. 

The ANAT-M analyzer (Photo 1) was designed as 

an analytic unit controlled with internal computer for 

chromatographic measurement of THT concentration 

in natural gas (on the basis of methods and analytic 

principles in accordance with requirements of standards 

PN-EN ISO 19739: 2010 [1] and ZN-G 5008:1999 [2]). 

The device features a modern electronic system, systems 

of measuring circuits` temperature stabilization, 

touch communication panel screen, user friendly 

interface and modern interpretative software. The 

ANAT-M features all the earlier mentioned merits of analyzers 

working on-line. The basic technical parameters 

of ANAT-M are presented in table 1. 

The analyzer is fully adjusted to transferring the results 

of measurements of THT concentration as well 

as its own working parameters by a telemetric system, 

which enables remote, current control of odorizing 

level in gas in a 24-hour period. It is adjusted to work 

according to the Polish telemetric standards (GAZ-MO- 

DEM 2 protocol). 


Table 1. Technical data of ANAT-M analyzer 

parameter value 


measurement range 5-100 mg/m 3 

operation temperature 

(working conditions) 

measurement time 

(complete measurement cycle) 

-20°C ÷ 70°C 

-15°C ÷ 35°C 

15 minutes 

measurement frequency 20 min. ÷ 24 hours. 

accuracy ± 7% 

precision 2,8% (n = 6) 

measurement repeatability 

24,1 ± 1,0 (n = 30) 

24,1 ± 1,5 (n = 6) 

selectiveness 100% (only for THT) 

power supply 230 V 

weight ~12 kg 

dimensions 38 × 26 × 32 cm 

maximal energy consumption (in working condition) 80 W 

n – number of measurements 

n = 6 – daily average at measurements taken every 6 hours 

The analysis is made with a programmed frequency 

of measurements. There is a possibility of setting 

any time interval between measurements: from the 

minimum of 20 minutes to 24 hours. After completion 

of the whole analysis cycle the result of measurement 

of concentration of the odorizing agent (THT) is 

presented in a digital form (in mg/m 3 ) and in graphic 

one on a display and then it is stored in memory of 

the device or is available in a digital form with aid 

of GAZ-MODEM 2 protocol, in software elaborated 

for requirements of the device as well as in an analog 

form in the output current 4-20 mA. The analyzer 

software facilitates simple and intuitional operation 

of the device. 

The ANAT-M analyzer in its current version is perfectly 

suited for cooperation with the domestic telemetry 

system, chiefly due to the fact that a protocol 

was implemented in it, in accordance with commonly 

accepted standard in gas industry. Data transmission 

is executed in it almost identically as in the case of 

standard gas computers. Reading the archived data 

from the analyzer is also possible, which in of lack 

of transmission (e.g. due to telemetry breakdown)


guarantees access to information stored in the device 

memory. An additional benefit of applying transmission 

protocol is the possibility of extracting other 

information (not only THT concentration) from the 

analyzer which can be used for the purpose of diagnostics, 

servicing, which additionally increases credibility 

of measurements. 

Measurement data can be transferred to central 

control rooms with aid of available telemetric and data 

transmission systems in the facility and integrated with 

existing telemetric systems (e.g. TelWin system). 

Measurement archive is formed automatically 

in an internal ‘inerasable’ memory of the analyzer. It 

covers the memory areas for measurements, diagnostic 

data (in the form of chromatographic curves) 

and incidets. The data from internal memory of the 

device can be written down on an SD memory card 

in the form of FAT system files. The format of created 

files (*.csv) enables direct import to most calculation 

sheets. In addition, together with each data set, an interpretative 

script is written down (JAVA script) at the 

same place in the same catalogue, enabling graphic 

representation of measurement data. It is also possible 

to create an archive of measurements taken by 

the device on an SD card. 

For requirements of telemetry, the data is also 

made accessible via the RS-232 interface in the protocol 

GAZ-MODEM 2. For diagnostic purposes, the 

reading of archive data was executed 

written down in 1 second intervals 

(diagnostic data in the form of 

chromatographic curves). 

Configuration of operational parameters 

of the analyzer and their 

storage in ‘inerasable’ memory (configuration 

file) is possible in a direct 

way (by their modification on a 

touch screen) or remotely, using the 

GAZ-MODEM 2 protocol. 

In order to secure safety and credibility 

of measurements, the analyzer 

contains programmed alarm conditions 

detected by an internal computer. 

Extended auto-diagnostics of 

analyzer operation permits immediate 

program reaction to alarm conditions 

and defective devices. Memory 

inserts are created then in the incident 

memory. Automatic reaction to 

alarm conditions consists in attempts 

of recreating the correct operation 

mode of the analyzer. In case of critical 

alarms, measurement taking is 

stopped, which is signaled by a relevant 

insert into the incident memory. 

The diagnostic program for the ANAT-M analyzer 

for a PC class computer allows to check the correctness 

of device operation, including: reading of the 

current data, configuration of analyzer operational 

parameters from the computer and reading of the archive 

data. 

The analyzer comprises sub-assemblies intended 

for work in industrial temperature range (working 

temperatures from –15°C to +35°C). Owing to the 

application of precise analog systems, the ANAT-M 

features large precision of measurements and the 

application of an efficient micro controller provides 

completely automatic operation of the device. 

Operational experience has confirmed high efficiency 

and reliability of the ANAT-M analyzer as well as 

correctness of operation and credibility of its indications 

in the facility. The popularity of the device in the 

domestic gas industry is confirmed by the map below 

(Fig. 1) with marked locations of installing these 

devices in the facility (situation as of June 2011). 

At present, already over 100 items of the ANAT-M 

analyzers function in the domestic control systems of 

gas odorant content in the areas of three gas industry 

companies (table 2). Great popularity of these devices 

is testified by their common application in remote 

control systems of this process. The first system of this 

type, using the ANAT-M analyzers was implemented 

in 2010 at the Gas Production Plant in Białystok of the 

Fig 1. Distribution of locations with installed ANAT-M analyzers on the map of Poland 


103

104 

Mazovian Gas Production Company [3]. Its goal is not 

only to monitor but also to control odorizing of the 

gas distributed by low and medium pressure mains, 

thus making contribution in the dynamic development 

of the MSG distribution system by more effective 

controlling of exploitation processes and management 

of the company assets. 

By close integration of the ANAT-M analyzers 

with the odorizing process management system at 

the OZG Białystok, its control was optimized from 

the local level of gas control center. In combination 

with modernization of the odorizing installations 

it resulted in the possibility to maneuver with the 

dose of odorizing agent introduced to gas by allowing 

immediate reaction to remotely read significant 

deviations from commonly approved parameters of 

odorizing in the entire controlled area of distribution 

system. 

Summing up the merits of ANAT-M analyzer, it can 

be stated that it is a specialized chromatographic online 

analyzer featuring parameters of operation which 

are adjusted in a selective way to detect and mark 



Table 2. The ANAT-M in Polish gas industry market – sales 

in period: December 2005 – June 2011 

ordering entity 

Mazovian Gas Production Company Co. Ltd 

Carpathian Gas Production Company Co. Ltd 

Pomeranian Gas Production Company Co. 

Ltd 

THT content in natural gas, exceptional in its class and 

adjusted to conditions required by the Polish gas industry, 

and at a price significantly lower than other 

devices fulfilling similar functions. 

Bibliography: 

1) 

2) 

3) 

sales of ANAT-M analyzers 

[pcs] 

OZG Białystok 22 

OZG Warsaw 16 

OZG Łódź 6 

OZG Mińsk Mazowiecki 14 

OZG Ciechanów 11 

OZG Radom 5 

OZG Tarnów 14 

OZG Kielce 8 

OZG Jasło 5 

OZG Kraków 6 

OZG Lublin 2 

OZG Sandomierz 2 

OZG Bydgoszcz 1 

OZG Gdańsk 6 

Total sales in period 12.2005 – 06.2011 [pcs] 118 

The author is an Assistant Professor, head of the 

Department and Gas Fuel Odorizing Unit at Oil and 

Gas Institute, Warsaw Branch. 

PN-EN ISO 19739:2010: „Gaz ziemny. Oznaczanie związków siarki 

metodą chromatografii gazowej”. 

ZN-G-5008: 1999: „Gazownictwo. Nawanianie paliw gazowych. 

Metody oznaczania zawartości tetrahydrotiofenu (THT)”. 

K. Grybowicz, W Stefanowicz: Automatyzacja procesu nawaniania 

gazu ziemnego w OZG Białystok”, Przegląd Gazowniczy nr 1(29), 

s. 40-41, 2011.

106 

One of the greatest challenges for ‘Gazoprojekt’ 

was construction of the Gas Transit Pipelines 

System with pumping stations and accompanying infrastructure. 

‘Gazoprojekt’ does not limit its operations 

strictly to the mains and gas facilities, the example of 

which are fuel pipeline projects. Taking into consideration 

the 60 years` operation of ‘Gazoprojekt’, its impact 

on the Polish energy sector and its increased security 

is obvious. 

Starting position – the stage 

of construction and expansion 

of classic gas plants 

‘Gazoprojekt’ was founded in 1951 in the period 

of intensive actions related to reconstruction of gas 

facilities destroyed during the Second World War. In 

1950 the gas system consisted of 154 gas plants producing 

gas from coal, 28 natural and coal gas distribution 

plants, 668 km of high pressure coal gas transmission 

pipelines and 1035 km of high methane natural 

gas transmission pipelines. The length of distribution 

mains was 6.3 thousand km. In the initial period the 

main issues of ‘Gazoprojekt’ were focused on projects 

of reconstruction of the local gas plants and local distribution 

mains. 



Contribution of the BSiPG GAZOPROJEKT 

(Gas Engineering Projects) in increased 

security in the Polish gas sector 

GRZEGORZ ŁAPA 

‘Gazoprojekt’ was a co-author of gas industry transformation from the 

local-municipal character into a signifi cant element of the fuel-energy 

sector by preparing investment projects, including among other 

things about 20 thousand kilometers of gas transmission pipelines, 

over 60 thousand kilometers of distribution mains, eight Underground 

Gas Storage Reservoirs, KRIO Odolanów (denitriding plant). 

Apart from the post war reconstruction of classic 

gas plants, projekts were made for new facilities in 

Białystok, Bydgoszcz, Poznan and Kłodzko. A number 

of projects were elaborated for the new Coal 

Gas Transmission Plants (purification, pumping and 

storage of gas), e.g. at Zdzieszowice, Knurow, Radlin, 

Walenty, Zabrze, Debiensko. From the point of 

view of the energy security of the country the most 

significant was participation of ‘Gazoprojekt’ in expansion 

of transmission and distribution systems. 

In 1960 the length of the coal gas pipeline mains 

was already 1070 km and the one transmitting high 

methane natural gas – 1420 km. Parallel to expansion 

of gas transmission system also the local distribution 

mains were developed (in 1960 – 7.8 thousand 

km). 

Programming the development 

of the gas sector 

By the fi fties of the 20 th century, the gas industry in 

Poland consisted chiefl y of local municipal enterprises 

busy with production and distribution of gas in the 

municipal gas mains. Increased gas consumption and 

related necessity of expansion of the state gas transmission 

system enforced a new quality of the gas in-


Dispersed gas sources and local range of 

gas transmission pipelines limited the increase 

in gas consumption. 

dustry – it changed its character from local-municipal 

to a significant element of the fuel-energy sector. It 

brought the necessity of organizing relevant services 

which would take care of professional programming 

and development planning in the Polish gas industry. 

After unsuccessful attempts to organize such services 

at the Head Office of Gas Industry Federation in Warsaw, 

finally it was at ‘Gazoprojekt’ that the Programming 

Lab of Gas Transmission Mains in Poland was 

established. 

The tasks of Programming Lab comprised of: 

• The survey of the gas market and determining 

the demand for gas in the medium and long 

term forecasts both for Poland and for particular 

regions; 

• Drawing up medium and long term gas balance; 

• analysis of gas acquisition sources; 

• optimization of expansion of gas transmission 

system, elaboration of initial data and project assumptions 

for constructing new linear and nonlinear 

facilities and expansion of those already 

existing; 

• analysis and study elaborations concerning methodology 

for forecasts in respect of gas demand, 

acquisition from domestic extraction sources, 

principles of balancing and optimizing the development 

of transmission system and distribution 

lay-outs; 

• elaboration of own analytic methods and tools. 

Since 1 January 2006, due to actual expansion of 

the range and profile of operations outside the gas 

industry, the Programming Lab changed its name to 

Studies and Analyses Lab. 

Contribution of ‘Gazoprojekt’ in 

development of the gas sector 

in the years 1960-1980 

In the twenty years` period of 1960-1980 there 

was substantial expansion of the transmission system 

(9.5 thousand km). The length of the mains in 

particular subsystems in 1980 was as follows: 

• 

• 

• 

Development of coal and natural gas 

transmission system increased possibilities 

of utilizing domestic reserves. 

Fig. 1. Gas system in 1950 Fig. 2. Gas system in 1960 

coal gas – 2640 km, 

high methane gas – 6136 km, 

nitrated gas – 2471 km. 

Expansion of the coal gas subsystem was connected 

with successive liquidation of the local gas plants. 

Liquidation of 100 gas plants by the year 1980 required 

elaboration of programs for changing the distribution 

mains and recipients. The development of coal gas 

reached its peak in 1980. Consumption of coal gas in 

the period 1950-1980 increased from 0.39 to 2.7 billion 

m 3 . Owing to the construction of transmission gas 

pipelines, the subsystems of Lower and Upper Silesia 


107

108 

were linked together. In order to balance the unequal 

consumption of coal gas, Gas Distribution Facility was 

constructed in Szopienice. The gas compatible with 

coal gas, which was produced there, secured the demand 

peaks at the level of 50 thousand m 3 /hour. 

Closing of a ring of high pressure gas pipelines of 

large diameters which allowed introduction into this 

system of gas obtained at the Odolanow Denitriding 

Plant was highly important in the high methane gas 

system. Construction of the denitriding plant not only 

allowed to balance uneven demand in the high meth- 



Fig. 3. Gas system in 1970 Fig. 4. Gas system in 1980 

Fig. 5. Flowchart of cryogenic installation 

ane gas system but also increased utilization of sources 

of nitrated natural gas, and lack of underground gas 

storages in the subsystem did not result in the necessity 

to reduce production in lower demand periods in 

summer. As a result of increased extraction, substantial 

expansion of nitrated natural gas transmission system 

was needed. 

The installation of cryogenic denitriding of natural 

gas extracted from local sources in the area of Odolanow 

was designed at ‘Gazoprojekt’ on the basis of the 

English process. Commercial products of the Gas De-


Plans of expanding the capacity of UGS The state of existing transmission system 

Fig. 6. Location of existing and designed UGS 

nitiriding Plant KRIO Odolanow, apart from high methane 

gas, supplied into the transmission system in gaseous 

form, are also liquefied natural gas (LNG) and 

helium. 

Underground gas storage 

reservoirs (UGS) 

Underground Gas Storage Reservoirs, as facilities 

increasing the energy security have always been one 

of the most crucial areas of ‘Gazoprojekt’ activities. Its 

team developed a program, which has been executed 

up untill now by PGNiG (Polish Petroleum and Gas Mining), 

of expanding the underground gas storage reservoirs 

in Poland and the concept and projects for the 

UGS reservoirs in: Husow, Swarzow, Strachocina, Wierz- 

chowice, Mogilno, Kosakowo, Daszewo, Bonikowo and 

– currently – Brzeznica. The Location of the existing and 

designed UGS reservoirs is presented in Fig. 6. 

Contribution of ‘Gazoprojekt’ 

in development of the 

gas sector after 1980 

Successive liquidation of classic gas plants and 

substituting the gas they produced with supplies of 

natural gas enabled to satisfy the growing demand. 

Fig. 7. Nitrated gas transmission system in 2011 

It was related with elaboration and execution of the 

program for switching the distribution mains and recipients 

to natural gas. This process was commenced 

in 1984. Later a need for limiting the range of nitrated 

gas appeared, which was caused by the necessity of 

maintaining security of supplies i.e. keeping up the required 

parameters of supplies (especially in the area of 

Przymorze) and unlocking the construction of the gas 

mains in the area covering the system. 

Economy reasons were no less important due to 

large nitrogen content, the transmission and distribution 

of nitrated gas is more expensive than in the case 

of high methane. 

The system of transit gas pipelines across 

the Polish territory 

The first ‘approach’ to construction of transit gas 

pipeline was made in the years 1966-1969. The technical 

project forecast the construction of gas pipeline 

DN 900 (Pr 5.5 MPa) 620 km long from Brzesc to Cybinka 

with four pumping stations on the route. The investment 

was interrupted in 1970. ‘Gazoprojekt’ returned 

to this investment in August 1993 as the General Designer 

of the transit gas pipeline system. 

The concept, multi-variant technical-operational 

assumptions and technical documentation were elaborated 

at ‘Gazoprojekt’ for this venture. During initial 

projekt works ‘Gazoprojekt’ cooperated with ‘Gazprom’, 

‘Biełtransgaz’ and ‘Wingaz’, chiefly in respect of agreement 

on transmission capacity of the whole Transit 

Gas Pipeline System from the Jamal basin to Western 

Europe. 


109

110 

Safety reports of the transit gas pipeline 

system 

A contribution in increased energy security is the 

analysis of reliability of the pipeline and nonlinear facilities 

executed by ‘Gazoprojekt’ and assessment of 

operational risk of the transmission and distribution 

mains. The results of analysis and evaluation are described 

in the form of safety reports. The aspects of 

operational safety are governed e.g. by GAS PIPELINE 

OPERATION AND USE MANUALS of particular operators. 

Cross-border connections of the gas transmission 

systems 

Connections of this kind are exceptionally important 

for energy security. Being actively involved, ‘Gazoprojekt’ 

takes part in project works and pre-project 

analysis related with planning and execution of the 

inter-connectors. 

Existing cross-border connections of the 

Polish transmission system 

The Eastern border – reception of gas from the 

Jamal contract is executed by connections in Droz- 

dowicze, Wysokoje and with the transit system in 

Włocławek and Lwówek. Connections to Hrubieszow 

and to Białystok are of a local character. They were also 

designed by ‘Gazoprojekt’. 

The Western border – connections with the German 

system in Lasowo with pumping stations in Krzywa 

and Jeleniow enabled the execution of supplies 

from the so-called ‘small’ Norwegian contract. Currently 

‘Gaz-System’ is executing investments related to 

expanding the transmission mains, which render in- 



Fig. 8. Diagram of Transit Gas Pipeline System through the area of the Polish Republic (DN 1400) 

creased gas import possible through the Lasowo Hub. 

In this respect ‘Gazoprojekt’ elaborated, upon the order 

of the Transmission Pipeline Operator, projects of pipelines 

DN 500 MOP 8.4 MPa in sections Jeleniow-Dziwiszow, 

Taczalin-Radakowice and Radakowice-Gałow. 

Existing connections in the area of Słubice, Gubin and 

Swinoujscie are of a local character. 

The Southern border – ‘Gazoprojekt’ executed analytic 

pre-project works, elaborating complete project 

documentation and acting upon the order of ‘Gaz-System’ 

as the General Investment Constructor; The Company 

built the Polish section of the inter-connector 

which will connect the Polish and Czech transmission 

systems near Cieszyn. 

The project for the system connection between Poland 

(UGS Strachocin) and Slovakia (Veľké Kapušany) was 

worked out at ‘Gazoprojekt’ as well. Existing connections 

near Głuchołazy and Branice are of a local character. 

Projects PolPipe and BalticPipe: in the years 

1999–2003 ‘Gazoprojekt’ executed a series of analyses, 

studies and the Program Spatial Concept concerning 

the PolPipe and BalticPipe pipelines. The 

objective of PolPipe pipeline was direct connection 

with Norwegian gas deposits. Its scope comprised 

the construction of about 1000 km of off-shore gas 

pipeline. In the case of the BalticPipe gas pipeline 

the scope of investment is substantially smaller and 

comprises the construction of about 230 km of the 

undersea gas pipeline through the Baltic Sea. The 

beginning of the pipeline was located in Denmark 

and the landing point is forecast on the Polish shore 

near Niechorze. 

Project Amber Pipe – in the analyses executed up 

untill now, the length of the Amber Pipe has been estimated 

at about 2200 km on the route: Latvia, Lithuania, 

Poland and farther westward to Germany. A fragment


of this investment may be the gas pipeline Szczecin- 

Gdansk, currently being constructed by ‘Gaz-System’. 

Liquefied natural gas (LNG) – the use of liquefied 

natural gas is treated as an element of diversification 

of gas supplies increasing the energy security. ‘Gazoprojekt’ 

developed analyses, concepts and projects 

concerning supplies, reception terminals and facilities 

connected with direct operation and regasification of 

LNG. Currently, ‘Gazoprojekt’ is developing projects of 

gas pipelines, the execution of which is forecast within 

the frames of the Act about investments in the scope of 

liquefied natural gas regasification terminal in Swinoujscie, 

which will enable introduction of gas from the LNG 

terminal constructed by the Company Polish LNG in 

Swinoujscie, i.e.: 

• 

• 

Swinoujscie-Szczecin – DN 800 MOP 8.4 MPa; 

Gustorzyn-Odolanow – DN 700 MOP 8.4 MPa. 

Feasibility study of the petroleum 

pipeline Brody-Płock 

The objective of the investment is transit of 

crude oil extracted in the area of the Caspian Sea 

to countries of the European Union with the possibility 

of receiving and utilizing a part of transported 

oil in the area of Poland – as the principal 

goal of diversification of crude oil supplies to 

Poland. 

In this respect ‘Gazoprojekt’ selected the route 

of Brody-Płock pipeline considering the formal, 

legal, technical and environmental conditions. 

Results of the analysis were presented on the international 

forum – at the European Committee 

and the Economic Forum in Krynica, Poland. 


111

112 

Fig. 9. Existing and potential cross-border connections of the Polish transmission system 

Fig. 10. PolPipe – BalticPipe 


Polpipe 

BalticPipe 

Niechorze 

GAS: exploration, distribution, sales


Route: from Novorossiysk through 

Bosphorus 

COMPARISON OF OIL TRANSMISSION ROUTES 

Fig. 11. Petroleum pipeline Brody-Płock-Gdansk 

Fig. 12. The route of Eastern part of PERN ‘Przyjazn’ petroleum pipeline 

Technical-economic audit of execution of 

the investment comprising the third line of 

PERN ‘Przyjazn’ petroleum pipeline in the 

section of Adamowo-Plebanka 

The objective of the audit: formal-legal analysis, 

determining the actual state of progress in project 

works, including the scope of executed works, determining 

the range of works and procedures required 

for completion of the investment, determining the 

volume of the budget for accomplishment of the 

investment. On the basis of the executed analyses 

and opinions, corrective and remedial recommendations 

were worked out for the investor in the scope of 

eradication of formal-legal and technical deficiencies 

Route: from Novorossiysk through Brody 

and Płock 

with proposition to implement several procedures of 

control and project execution management. 

The investments mentioned in the article are only a 

part of the projects executed by ‘Gazoprojekt’. On the 

basis of the presented examples, it can be stated that 

contribution of Gas Engineering Projects ‘GAZOPRO- 

JEKT’ in the development of gas industry and also in 

the increased energy security for Poland is vital. The 

strategy of ‘Gazoprojekt’ comprises continuation of operations 

related to this sector also in the future. 

Vice President of the Board 

BSiPG „GAZOPROJEKT” SA 


113

114 

n Poland, a multi-energy company is the sub- 

I ject that provides electric energy, central heating 

and gas, and obtains energy from unconventional, 

e.g. renewable sources. 

This short characteristic is a good description 

of the activity of CP Energy Capital Group and 

its subsidiaries. CP Energy, apart from the turnover 

and distribution of natural gas, concentrates 

more and more on full service which offers notable 

economic benefits to its industrial clients. 

It offers modern, extensive and optimum energy 

solutions with the use of natural gas mains, LNG 

(Liquefied Natural Gas) and liquid fuels (LPG). 



Multi-Energy companies – the idea and development prospects 

”Multi”, meaning ”many modern 

solutions” 

MARIUSZ CALIŃSKI 

For a few years now, companies in the energy sector 

have declared development in multi-energy companies 

– how is this idea carried out in practice? 

Extensive approach 

In April 2011, CP Energy amalgamated with KRI 

plc – another company in the sector. This resulted in 

increased dynamics of Capital Group development 

owing to the extensiveness of off ered services, optimization 

of the currently working energy systems 

and off ering the clients energy supplies indispensable 

for technology and social-living processes. 

The opportunity of offering the clients a wide 

spectrum of energy solutions is provided by the 

LNG (Liquefied Natural Gas) – the natural gas 

which has been used for many years and which,


when cooled down to -163°C transforms into liquid 

state. Precise and professional operation of 

the most modern technologies which use LNG 

and natural gas is – which is worth emphasizing 

– KRI`s domain. Natural gas liquefaction is associated 

with the necessity for a very thorough fuel 

purification from carbon dioxide, nitrogen, water 

and mercury. LNG plays an important role in gassupply 

system and in ensuring central heating to 

towns and districts; it also helps in solving energy 

problems in industries far away from transmission 

systems. It is also an essential link in the process of 

transitory gas supplies in areas deprived of traditional 

gas mains. 

Savings without the 

loss of quality 

CP Energy draws attention to the possibility for 

potential clients to use solutions which offer notable 

savings that often amount to 1 billion PLN 

annually (administrative districts, thermal energy 

companies, local production companies). In realization 

of its tasks CP Energy focus on the imple- 

mentation of solutions which enable return of the 

invested capital in the perspective of many years` 

cooperation. 

Essential for the Group’s interest and operation 

is a quick response to the market needs, 

especially to the growing demand for outsourcing 

services in energy solutions, observed in Poland. 

The outsourcing services offered by CP Energy 

consist in an extensive approach to clients’ 

expectations, considering energy consultancy, 

investment execution, facility operation, property 

management and supply of final energy 

products. 

The Capital Group, in conformity with adopted 

by the European Union goals for the energy and 

climate policy ”3 × 20”, which in particular takes 

into consideration the aspiration for greenhouse 

gas emission reduction, executes infrastructural 

investments (energetics, heat engineering) based 

on natural gas which was acknowledged as fuel 

that supports environment protection and ensures 

primal energy savings. 

The offer of CP Energy Capital Group is a response 

to the market expectations and clients’ 

demand for services and energy products, 

especially: 

• supplies of gas fuel for energetics, heat 

engineering, production companies and 

transport; 

• electric energy supplies; 

• gas-supply systems of administrative districts 

and allotted economical areas; 

• municipal boiler house modernization which 

enables the elimination of dusts, sulphur, NOx, 

CO2 reduction and heat supplies; 

• 

energy outsourcing. 

Multi-flexibility 

Energy analysis and conversations with clients 

enable flexible adjustment of the offer to the 

needs, in order to use the most suitable way of cooperation 

depending on the specificity of chosen 

energy solutions and necessary activities concerning 

its optimization. Systems of crest power or re- 


11

116 

serve systems might also be solutions used by CP 

Energy. 

Apart from realization of many projects which 

allow the use of energy solutions based on natural 

gas, the CP Energy Capital Group also develops 

its operation in turnover of natural gas and electric 

energy. The principle of access of third party to 

the mains – TPA principle (Third Party Access), according 

to which final recipients can freely choose 

the energy seller (producer or turnover company) 

who offers the most favourable conditions, among 

others enables simultaneous supply of electric energy 

and natural gas (the so-called dual fuel offer). 

In harmony with the strategy 

of Poland’s development 

The aim of the Capital Group is obviously the 

continuation of development which enables a 

larger supply of different kinds of energy (gas, 



heating, electric energy, air-conditioning) to the 

clients and local community and creating conditions 

which enable its effective and profitable use. 

Assumptions of domestic energy policy by the 

year 2030 indicate that such activities of energy 

companies are in accordance with the strategy of 

the country’s economic development. 

The nearest future? The interest of companies 

like CP Energy Capital Group, in multi-energy investments 

and cooperation with administrative 

districts will be rising. It is very probable, the more 

so that such companies have both the opportunities 

of capital gain and the necessary engineering-technical 

base. Encouraging for the activities 

is also the TPA principle introduced in the last few 

years and the privilege of renewable energy with 

cogeneration. The future belongs to multi-energy. 

The author is the 

Chairman of CP Energy


Pipeline gas 

LNG 

92.4 

9.4 

20.9 

9.8 

The main directions in 

natural gas trade in 2010 

[in bilions m 3 ] 

5.4 

6.2 

16.0 

20.1 

36.5 

44.1 


4.1 

5.5 

113.9 

12.1 

USA 

Canada 

Mexico 

South and Central America 

Europe and Eurasia 

Middle East 

Africa 

Asia and Pacic 

55.9 

16.6 

6.5 

17.3 

10.9 

32.0 

21.0 

18.8 

8.8 

14.9 

7.0 

43.3 

6.3 

17.7 


5.8 

8.2 

5.2 

117

118 

80 

70 

60 

50 

40 

30 

20 

10 

0 

7.4 



Natural gas: Proved reserves at end 2010 

[in trillion m 3 ] 

9.9 

14.7 

16.2 

South and Central America ................................7.4 

North America ............................................................9.9 

Africa ...............................................................................14.7 

Asia and Pacifi c ........................................................ 16.2 

Europe and Eurasia ................................................63.1 

Middle East ................................................................75.8 


63.1 

75.8


Distribution of confi rmed natural gas resources in 1990 

– 125.7 trillion m 3 total 







North America ....................................................7.6% 


Africa ........................................................................6.8% 


Middle East ........................................................30.2% 


North America ....................................................4.9% 


Africa ........................................................................8.1% 


Middle East ........................................................38.3% 


North America ....................................................5.3% 


Africa ........................................................................7.9% 


Middle East ........................................................40.5% 


119

Ecology 

in the oil 

and gas industry

122 

The aim might be achieved owing to the development 

of energetics based on renewable 

sources, such as sources of energy coming from renewable, 

non-fossil resources, including wind power, 

solar energy, aerothermal energy, geothermal, 

hydrothermal and ocean energy, hydro energy, energy 

acquired from biomass, gas coming from garbage 

dump, sewage treatment plant and biological 

sources (biogas) [1]. On the one hand, the use 

of these sources is a way of acquisition of energy 

diversification and partial independence from fossil 

fuels, on the other hand, it realizes goals connected 

with environmental protection through creating 

opportunities of greenhouse gas emission reduction 

currently generated by conventional energetics, 

which is largely based on coal in many countries. 

The legislative actions taken by the European Union 

in energetics sector are aimed at promoting the use 

of renewable energy sources. In order to do that, 

at the end of the year 2008 and at the beginning 

of the year 2009 climatic and energy package was 

accepted. The package assumed that until the year 

2020 the member states will achieve a goal, named 

also 3 × 20, which obligates the member states: to 

reduce the level of greenhouse gases emission by 

20% in comparison with the year 1990, to increase 

the contribution of renewable energy sources by 

20% in the general volume of consumed energy 

and to improve the energy efficiency by 20%. 


Ecology in the oil and gas industry 

The role of biogas in the development of RES sector 

Promotion of Healthier Energy 

JOANNA ZALESKA-BARTOSZ 

The aim of the energy policy currently operated by the European 

Union is to guarantee energy security for the member 

states, respecting the natural environment at the same time.


Adopted by the European Parliament and the European 

Council Directive 2009/28/EC of 23 April 2009 

concerning promoting the use of energy from renewable 

sources which revises and consequently overrules (as of 

1 January 2012) the preceding Directives 2001/77/EC 

and 2003/30/EC, is to be used – in the context of the 

already mentioned aim, i.e. to gain 20% contribution of 

renewable sources in energy consumption – in order 

to promote the use of energy from renewable sources. 

The new Directive determines obligatory main aims for 

particular member states with reference to the complete 

energy contribution from renewable sources in 

the final gross energy consumption supposed to be 

achieved by these countries by the year 2020. For Poland 

the contribution threshold of renewable energy 

sources in the final gross energy consumption in 2020 

was determined as 15% but according to the Central 

Statistical Office in 2008 the energy contribution from 

renewable sources in the final energy consumption 

was 6.3% in total [2]. Apart from the main goal, Poland 

should also fulfill the obligation to achieve indirect 

goals imposed by the directive, developing at different 

levels in the years mentioned: 8.76% by 2012, 

9.54% by 2014, 10.71% by 2016 and 12.27% by 2018. 

The said directive imposed on all the member states 

an obligation to introduce proper legal instruments to 

the state regulations whose aim is the development 

of renewable energetics and as a result, its increased 

contribution in produced energy balance by encouraging 

projects connected with the use of renewable 

energy sources and guaranteeing the possibilities of 

selling the produced energy at advantageous prices. 

Because the development of renewable energy sources 

requires high capital investment, aiming at increasing 

its contribution in the main balance of produced 

energy involves the necessity for using proper support 

systems. Obviously, the choice of a particular support 

system (from among the systems based on tariff prices, 

energy origin certificates – ”colour certificates”, tax 

solutions) and using it is not the only guarantor of increasing 

the number of investments in RES. The RES 

sector development is also conditioned by meeting 

the legal requirements, such as regulations concerning 

the spatial development, construction law or environment 

protection law. 

In Poland, supporting renewable energy sources 

was reflected in subsequent amendments of the Act of 

10 April 1997 – the Energy Law. The RES promotion system 

(commenced on 2004), cogeneration (since 2007) 

and biogas (since 2011) included in this legal act was 

oriented towards the amount of electric energy coming 

from renewable, cogeneration and biogas sources. 

The system is based on the opportunity to gain energy 

certificates called ‘green certificates’ by the producer of 

electric energy from RES (article 9e of the Energy Law), 

cogeneration energy certificates (article 9l of the Energy 

Law), biogas energy certificates (article 9o of the 

Energy Law) and on the resulting property rights [3]. 

However, straight majority of the EU states built the 

RES support system on the basis of tariff prices for producing 

energy from RES which is measured by widely 

understood energy efficiency, conditioned by the 

type of technology, the enterprise location, the age of 

the installation and not only the amount of produced 

energy. 

RES structure in Poland 

According to the Energy Regulatory Office data, by 

mid-June 2011 there were 1393 RES installations of total 

power 2852 MW (2.852 GW) in the country. 472 wind 

power installations (single windmills and windmill 

farms) had the greatest power (1389 MW). 741 hydroelectric 

power plants had the 947.6 MW of manufacturing 

capacity. 19 biomass energy plants had the total 

capacity of 421.3 MW. Four solar power plants existing 

in the country have the capacity of only 0.1 MW. There 

were 157 installations using biogas for the production 

Type of RES 

installation 

Number and capacity of RES 

installations in Poland 

Number 

of installations 

Total capacity 

[MW] 

Average 

installation 

capacity 

[MW] 

water 741 947.6 1.28 

wind 472 1389.0 2.94 

biogas 157 93.4 0.59 

biomass 19 421.3 22.17 

sun 4 0.1 0.03 

of electric and thermal energy in the cogeneration system 

in the country. The total capacity of the installations 

was 93.4 MW. There were also 44 installations in 

Poland producing electric current through co-burning 

of biomass and fossil fuels. However, including the latter 

ones in the support system in the form of green 

certificates is quite a controversial solution and, in the 

opinion of many experts, it shortens the Polish odds 

on realization of the 2020 goal (15% of obligatory RES 

contribution for Poland) noted in the 2009/28/EC directive. 

The same amount of biomass used in the sys- 


123

124 



tem of highly efficient cogeneration would make a 

three times higher contribution in the realization of 

the determined goal for RES, and reaching this goal 

will not be an easy task for Poland [4]. 

From among all 157 biogas installations operating 

in June 2011, the majority produces energy from bio 

gas acquired from waste stockpile and sewage treatment 

plant. According to the register of energy companies 

dealing with agricultural biogas production run by 

the Chairman of Agricultural Market Agency, there are 

currently (as of 24.05.2011) only 11 agricultural biogas 

companies in the country of 11.5 MW total capacity [5]. 

In Germany, in comparison with Poland, at the end of 

the year 2010 there were 6.000 biogas installations of 

total capacity of 2280 MW with potentials comparable 

with the Polish agricultural biogas potential assessed 

on the basis of the acreage size and the availability of 

agricultural waste. Such structure of biogas technologies 

in Poland is a result of used electric energy support 

system from renewable sources adopted at the stage 

of accession to the European Union and implementation 

of the Directive 2001/77/EC of 27 September 

2001 concerning the internal market support of electric 

energy production produced from renewable energy 

sources. The adopted system of green certificates of 

supporting electric energy coming from RES promotes 

every electric energy unit in the same way, no matter 

what source and technology have been used. The material 

for biogas production, practically free, in stockpiles 

and sewage treatment plants, and the legal obligation 

of stockpile degassing and using the energy of 

extracted biogas because of environmental protection 

constitute a sufficient encouragement to invest in this 

kind of biogas technologies. 

The guarantee to meet the already established for 

our country renewable energy contribution in the final 

gross energy consumption, the necessity for CO2 

emission reduction and the obligation of implementation 

of the 2009/28/EC directive contained in ”The national 

plan concerning energy from renewable sources” 

accepted by the government, result in the assumption 

that the significance of agricultural biogas in the 

green energy market is going to increase quite soon. 

The amended act of 8 January 2010 of the Energy Law 

which on 1 January 2011 introduced biogas origin certificates 

called “brown certificates” – they confirm the 

production and introduction of agricultural biogas to 

distributional gas mains (article 9o of the Energy Law) 

– is supposed to be an additional encouragement for 

investing in agricultural biogas technologies. The opportunity 

of receiving the ”brown certificate” concerns 

agricultural biogas producers only, and only those 

who decide to introduce it to the gas mains. In a situation 

where electric energy is produced from extracted 

biogas, the producer will receive the green certificate,


but when they use biogas for electric energy production 

in cogeneration – the producer will also receive 

violet or yellow certificate. 

Opportunities of development 

in biogas market 

The government programme adopted by the Council 

of Ministers in July 2010 entitled: ”The directions 

of agricultural biogas works development in Poland” 

drawn up by the Ministry of Economy in cooperation 

with the Ministry of Agriculture and Rural Development 

presents a plan whose realization is supposed 

to result in building approximately one agricultural 

biogas plant in each district. According to predictions 

by the Renewable Energy Institute presented in ”The 

companion for investors interested in building agricultural 

biogas works” drawn up by the Ministry of Economy, 

stimulating agricultural biogas market will depend 

on the evolution and improvement in biogas projects 

support system, especially those of lower manufacturing 

capacity, i.e. lower than 1 MW [6]. Currently applied 

system, based on origin certificates which are stock 

commodity and investment subsidies, prefers higher 

capacity installations and installations in which the 

extracted biogas is consumed in cogeneration units. 

New opportunities for agricultural biogas works market 

development are created by the amended Energy 

Law which introduced the possibility of pumping agricultural 

biogas to the gasworks mains after adaptation 

of the gas to the qualitative parameters of gas transported 

through these gas mains. For introducing biomethane 

(refined biogas) to the distributional mains 

of natural gas its producer might receive an additional 

support in the form of the so-called ”brown certificate”. 

Transport of the extracted biogas to places with 

greater demand for thermal energy than in the location 

of agricultural biogas works, or to places where 

biogas might be used as fuel for cars will enable more 

effective exploitation of the biogas energy. Usually 

thermal energy produced from biogas in cogeneration 

CHP systems situated by biogas works is not fully used. 

However, as long as there is no executive directive to 

the amended Act of the Energy Law, the instrument is 

going to be a defunct regulation. The potential development 

of biogas technologies based on pumping biomethane 

to gas mains will be dependent on the form 

of this regulation and especially on the suggested way 

of counting of the amount of produced agricultural biogas 

on the equivalent amount of electric energy produced 

in RES and qualitative requirements for agricultural 

biogas pumped to the gas system. 


12


There are issues that need to be regulated legally 

and among them there is the issue of who will incur 

the costs of introducing biogas to the local natural gas 

mains. Having considered the fact that agricultural biogas, 

before being pumped into distribution mains, 

has to be subject to the process of standardization, i.e. 

the natural gas purifi cation and refi ning to the qualitative 

parameters, such a way of biogas use is burdened 

with considerable fi nancial outlays connected with investments 

and exploitation. Apart from the costs of 

the installation of biogas refi ning alone, there are additional 

costs connected with the necessity for building 

or expansion of the gas mains which is usually absent 

in rural areas where agricultural biogas works come 

into existence. One of the ways for adapting the agricultural 

biogas is building local pipelines, which provide 

biogas for installation of purifi cation and refi ning 

in whose vicinity there will be gas fi lling stations, used 

for transport. 

The recent years prove that there is an increase 

in the interest of pumping biogas into the mains in 

Europe. According to information included in the 

”EurObserv’ER 2010 biogas barometer” report, in the 

year 2009 there were eight European countries out of 

28 that extracted biogas, i.e. Austria, France, Holland, 

Luxemburg, Germany, Norway, Sweden and Switzerland 

that pumped biomethane into the gas mains. In 

the middle of the year 2010 there were 67 installations 

for pumping biomethane into pipelines in these countries 

and other 33 installations were under construction, 

among others, at the end of 2010 biogas works 

was opened which processed biogas into biomethane 

in Great Britain [7]. Biomethane pumped into mains is 

used in cogeneration systems for electric and thermal 

energy production and also as road transport fuel. In 

Germany only three out of 23 installations for pumping 

biomethane into mains are used for transport. This 

gas is used in our Western neighbours, especially as 

an additive for road transport fuel. The leader in purifying 

biogas into biomethane and using it for transport 

is Sweden, and the greatest amount of biogas in 

this country comes from sewage treatment plants. In 

2006 selling biomethane for production of road transport 

fuel exceeded in Sweden the sales of natural gas 

used in transport. 

The way that the developing biogas sector in Poland 

is going to choose and how biogas is going to be 

used in our country will depend on the accepted support 

system for biogas technologies and the legislative 

changes in Polish legislation concerning renewable 

energy. As the implementation of 2009/28/EC directive 

is necessary (the deadline of transposition expired 

on 5 December 2010), Poland is obliged to draw up 

a separate law concerning renewable energy sources. 

There is planned an amendment of the Energy Law 

which will include electrical energetics and heat engineering 

but also enacting a separate gas law. It is going 

to be partly dependent upon the accepted legal 

solutions whether the new agricultural biogas works 

and new sewage treatment plants will still be oriented 

at cogeneration or if they will choose other ways of 

using biogas. There is a path that must be marked out 

and this is the path of coming to the obligation imposed 

on Poland, which is reaching 15% of RES energy 

contribution in energy consumption balance. 

Literature: 

1) 

2) 

3) 

4) 

5) 

6) 

7) 

New opportunities for agricultural 

biogas works market development 

are created by the amended Energy 

Law which introduced the possibility 

of pumping agricultural biogas 

to the gasworks mains after 

adaptation of the gas to the qualitative 

parameters of gas transported 

through these gas mains. 

For introducing biomethane (refi 

ned biogas) to the distributional 

mains of natural gas its producer 

might receive an additional support 

in the form of the so-called 

”brown certifi cate”. 

The author is a research worker at the 

Oil and Gas Institute in Cracow 

The European Parliament and Council Directive 2009/28/EC of 23 

April 2009 concerning promotion of energy from renewable sources 

which revises and overrules directives 2001/77/EC and 2003/30/EC, 

Offi cial Journal of the European Union. 

Energy from renewable sources in the year 2009, Central Statistics 

Offi ce, Warsaw 2010. 

Act of 10 April, 1997 – the Energy Law (Offi cial Journal of 1997 No.54, 

pos. 348). 

Wiśniewski G., www.wnp.pl portal 

The registry of energy companies working on extracting agricultural 

biogas, Agricultural Market Agency, www.arr.gov.pl 

The companion for investors interested in building agricultural biogas 

plants, Renewable Energy Institute, Warsaw 2011. 

www.eurobsrev-er.org 


127

128 

In case of bio-fuel application, its higher density, 

viscosity and lower volatility, as well as related 

with it rinsing by fuel sprayed on cylinder tube walls 

enhance the process of intensifi ed dribbling and 

then entering the oil sump by fuel with a bio-component. 

Substantial intensifi cation of diluting the 

engine oil occurs with fuel injection system of the 

common rail (CR) type to aid active regeneration of 

the DPF fi lter (Diesel Particulate Filter) in the exhaust 

system of an engine. Application of such technical 

solution is very common now. Although its drawback 

is the fact that the additional delayed injection 

of fuel not combusted in the engine meant to heat 

up exhaust gases before a catalytic converter preceding 

the DPF may cause intensive dilution of engine 

oil. It occurs especially when we operate the 

vehicle in a city. Driving there features low loading 

of an engine when the frequency of necessary regenerations 

of the DPF increases, while they are not 

always possible to be initiated due to low temperatures 

of exhaust gases. 



In uence of FAME component in fuel on engine oil degradation and selfignition 

engine emission 

Bio-components in fuel and 

engine oil 

ENG. PHD ZBIGNIEW STĘPIEŃ, ENG. PHD STANISŁAW OLEKSIAK, ENG. MSC. WIESŁAWA URZĘDOWSKA 

Apart from undisputable benefi ts, the bio-fuels also feature some unfavorable 

properties, among which some are related to higher dilution 

of lubricating engine oil (including up to 7% (V/V) FAME) than in 

case of traditional diesel oils, and the necessity to replace the oil more 

often. Excessive dilution of oil leads to many serious problems, including 

gradual reduction of its functional and operational properties, 

which leads to complete product degradation by oxidizing and 

polymerizing of unsaturated components of the fuel included in oil. 

• 

• 

• 

• 

• 

• 

The implications of the above processes are: 

rapid decrease of engine oil viscosity; 

formation of residues and waxes; 

exhausting of alkaline reserve of oil, thus a 

drastic drop of base value; 

rapid increase of acid value indicating degradation 

of lubricating oil; 

rinsing out of some metals as e.g. copper and 

lead from slide bearing bushing; 

clogging of oil fi lters with residues. 

Research studies executed by diff erent world 

centers unanimously point to a progressive process 

of degradation of lubricating oil diluted with biofuel 

[1-5]. 

Accurately operating dispenser fuel injection 

systems of the common rail type are presently considered 

to be the most prospective feeding systems 

for self-ignition engines. This opinion is the result 

of both their key meaning in reducing emission 

of harmful exhaust gas components and fuel con-

130 

sumption, as well as large potential at optimizing 

operational parameters of an engine in the range 

depending on demand [5-9]. Technical solutions applied 

in CR type systems which decide about their 

merits are first of all maximal reduction of diameter 

of fuel injection holes and high fuel injection pressure. 

The holes form outlets of ducts whose shape 

(geometry) has a crucial influence on lines of stream 

flow field and consequently on fuel fragmentation 

into droplets and their dispersion in air charge and 

then evaporation in the combustion chamber. Additionally, 

application of conical outlet ducts in jets 

allows to increase velocity of incoming fuel stream 

and its momentum, which improves substantially 

the quality of spraying, resulting in better mixing of 

the fuel with air in the combustion chamber. However, 

all the mentioned construction solutions and 

technological processes may not bring expected effect 

due to sedimentation forming on the fuel jet 

duct walls caused by the reaction of fuel which depends 

largely on its properties. 

The final section of spraying jet in the CR system 

is exposed to high temperatures of combustion 

process, which increases the risk of limited 

rate of outflow and disturbing the shape of 

sprayed fuel stream by coke sedimentations forming 

inside the ducts and around the outlet holes 

(Photo 1). Wax sedimentation formed on internal 

surfaces of working elements of the fuel injectors 

influence adversely the dynamics of their opera- 



tion, disturbing the times and pressures of particular 

periods of multiphase injection. The results 

of above phenomena are various operational dysfunctions 

of the CR systems [6-8]. 

Common use of low sulfur diesel oils and systematically 

growing content of bio-components 

in them resulted in increased sedimentation both 

on inner surfaces of elements of pumps and injectors 

and on the holes of fuel dispensing jets, 

clogged with coke. Currently produced diesel oils 

include various chemical compounds with higher 

acidity. Fatty acids, unsaturated in various degrees 

are commonly used as lubricating additives. Such 

acids react easily with metal ions which are fuel 

impurities forming soaps and sedimentations. Included 

in diesel oil FAME compounds (Fatty Acid 

Methyl Esters) may additionally promote formation 

of sedimentation on injector jets due to acid impurities 

appearing on them, formed during production 

of FAME and those formed by autocatalytic 

dissociation of fatty esters at the presence 

of metal ions. Therefore, the results of interaction 

of changing fuels, including bio-fuels, with modern 

construction elements of combustion engines 

must be subject of uninterrupted research and 

assessment. 

Processes of degradation of lubricating engine 

oil diluted by bio-fuel and results of inter-action 

of fuels including bio-components with modern 

constructions of combustion engines were the 

a b 

Photo 1. Limited outflow and deformation of sprayed fuel streams due to cake sedimentation inside the ducts and 

around the injector outlet holes: a) ‘clean’ injector, b) ‘coked’ injector (Source: Lubrizol Corporation)


topic of the international research project ‘BIODEG’ 

(executed from June 2008 till April 2011) financed 

by Norwegian Financial Mechanism and EOG Financial 

Mechanism. 

Scope of BIODEG project 

The research program of the BIODEG project 

concerned the assessment of influence of variable 

content of bio-components in diesel oil on emission 

of solid particles and other harmful components of 

exhaust gases from a modern self ignition engine. 

The research concerned also the assessment of possibilities 

of decreasing the emission when feeding 

the fuels by adjustment of the level of recirculation 

of exhaust gases, application of various systems of 

consecutive exhaust gas processing, optimizing 

the engine setting etc. Moreover, the research included 

precise, extensive analysis of engine lubricating 

oil over a longer period of operation, which 

was targeted to asses compatibility of lubricating 

oils and diesel oil including bio-components and 

possible assessment of influence of lack of compatibility 

on the engine emission. The tasks planned in 

the project were coordinated and executed in part 

by the Oil and Gas Institute in partnership with the 

University of Applied Sciences Laboratory of IC-Engines 

and Exhaust Gas Control (AFHB) from Switzerland 

and Western Norway Research Institute (WNRI) 

from Norway. These are the world-famous centers 

which render high quality research services and can 

boast great experience in conducting European 

projects. 

Engine FORD 2.0i 16V Duratorq TDCi 

Cylinder layout row, vertical 

Number of cylinders 4 

Valve timing gear type DOHC/4VPC 

Engine capacity 1998 cm 3 

Max. output 96 kW / 3800 rpm 

Max. torque 330 Nm / 1800 rpm 

Fuel injection system common rail 

Filling of cylinder Turbocharged 

Emission EURO IV 

Lubricating system 

capacity 

Photo 2. Research and testing work station with engine FORD 2.0i 16V Duratorq TDCi. 

6,0 dm 3 

Degradation of engine oil 

– research by Oil and Gas Institute 

Research on interaction of lubricating engine oil 

with FAME was executed in the project using a universal 

research and testing work station equipped with a 

modern compression – ignition engine of HSDI type 

made by FORD, with factory marking 2.0i 16V Duratorq 

TDCi [5, 7] (Photo 2). Direct fuel injection engine 

equipped with CR high pressure fuel injection system. 

The testing time was determined to be 400 hours. 

Oil samples were taken and analyzed at the beginning 

of the test and then after 50, 100, 150, 200, 250, 300, 

350 and 400 hours of real engine operation in test. 

The basis for adopted scope and method of testing 

the degradation of lubricating oil and the criteria for its 

assessment in the long term in simulation engine tests 

was a set of commonly applied, standard research 

methods. However, on account of not always explicit 

results of assessment of the process with the use of 

these methods, an attempt was made to take more 

multi directional and also more creative approach to 

the topic in question. 

Bearing in mind unavoidable dilution of the engine 

oil with fuel in order to monitor the changes of 

its operational properties during engine tests, the 

process was selected, which due to the presence of 

FAME in fuel would be decisive for the rate of progressing 

oil degradation. This process is oxidizing 

stability, which was examined directly both in conditions 

of large volume (modified method ASTM D 

7545 using PetroOXY apparatus) as well as in ‘thin 

coat’ (modified procedure ASTM D 4742 with application 

of a spinning bomb). The operational properties 


131

132 

of engine oil used in conditions of ‘thin coat’ in high 

temperature and at large velocities of cutting were 

examined in a HTHS test. 

Applied methods of monitoring the changes of oil 

operational properties during simulation tests are listed 

in table 1. 

Assessment of the size of coking of injector jets and 

sedimentation formed on inner surfaces of the most 

essential, precise elements of jets was executed utilizing 

measurements of selected operational-diagnostic 

parameters of the engine, including volume of smoke 

and mass per unit emission of solid particles. These 

parameters were measured after 10 hours of running 

the test (after stabilization of operating parameters of 

the CR type fuel injection system in which a new set 

of injectors was used for each test) and after finishing 

the test. Mass emission of solid particles was measured 

according to requirements of the research procedure 


Table 1. List of methods of monitoring the 

changes of oil operational properties 

Kinetic viscosity PN-EN ISO 3104 

Viscosity indicator ASTM D 2270 

Marking of dynamic viscosity HTHS CEC L-36-90 

Acidic value ASTM D 664 

Total alkaline value ASTM D 4739 

Marking of dilution with fuel ASTM D 3524 

Water content ASTM D 95 

Content of elements originating from quality package ASTM D 4951 

Content of elements originating from wear of engine elements ASTM D 5185 

Content of insoluble impurities ASTM D 893 

Marking of soot contents DIN 51 452 


Resistance to oxidizing in large volume ASTM D 7545 (modification PetroOXY) 

Resistance to oxidizing in thin oil coat ASTM D 4742 (modification) 

Level of oxidizing (FT-IR analysis) 

Own method of Oil and Gas Institute based on 

ASTM D 2412 

ISO-8178-1, in two conditions, which differed in parameters 

(measurement phases) of engine operation, 

characterized by its load and revolution velocity. The 

parameters of engine operation were selected in such 

a way as to reflect the most characteristic states of the 

engine operation for PM mass emission and difference 

in their composition [10-14]. 

Conclusions of the Oil and Gas 

Institute research: 

• the application in self-ignition engines of fuels 

with substantially increased contribution of FAME 

(above 10%) influences multi directional acceleration 

of engine oil degradation to the extent

• 

• 

• 

• 

• 


which endangers its safe operation in recommended 

period of use; 

the composition of engine oil i.e. its base and 

package of refining additives co-decides on the 

intensity of its destruction. Oil bases with smaller 

natural resistance to oxidizing undergo faster 

degradation in presence of bio-fuels and applied 

packages of refining additives do not limit this 

phenomenon sufficiently. 

assessment of the degree of loss of operational 

properties of the engine oil only on the basis of 

physical and chemical properties is not sufficient 

because it does not take into consideration critical 

operating conditions in thin coat, which is 

necessary, facing the common tendencies to reduce 

tolerances for the fine fitting and cooperating 

movable elements; 

increasing contribution of FAME in fuels for selfignition 

engines is not insignificant for stable in 

time operation of CR type fuel injection systems 

due to the processes of chemical degradation of 

lubricating engine oils and formation of external 

and internal sedimentation of different chemical 

character on the surface of elements of the fuel 

injection system; 

increased content of bio-components in diesel 

oil contributes to progressive growth of coking 

of the jets in CR type fuel injection system leading 

to greater volume of PM mass emission. It is 

directly related to quantitative and qualitative 

deterioration of fuel dispersion process, including 

disturbances in the shape of sprayed streams, 

limitation of fuel outflow volume, deterioration 

of spray fineness and dispersion of fuel droplets, 

blocking of fuel spray controlling injector pins or 

those controlling fuel flow through the injector, 

etc.; 

comparative, multi-parameter assessment of 

progressing degradation processes of examined 

lubricating oils cooperating with diesel oil or with 

bio-fuels, demonstrated smaller loss of operational 

properties by synthetic oils in comparison to 

mineral oils, with increasing content of bio-components 

in fuel. 

It has to be remembered that apart from the content 

of bio-components in fuel, the factors which 

lead to accelerated, multidirectional oil degradation 

include: 

• 

• 

• 

• 

• 

modern, complicated engine construction; 

advanced exhaust gas cleaning system; 

new construction materials; 

increasing thermal and mechanical load of engine 

elements; 

complicated lubrication systems; 


133

134 


• 

• 


changes in oil production processes; 

extended time of engine running between oil 

changes. 

Influence of bio-components (RME) on 

emission of a diesel engine with DPF and/or 

SCR system – research by AFHB 

The SCR (Selective Catalytic Reduction) is considered 

to be the most efficient system of reducing NOx emission. 

In combination with diesel particulate filter (DPF) 

the system makes a significant step forward to obtain 

zero emission in vehicles with diesel engines. 

Research was executed using engine Iveco F1C 

Euro 3 with the SCR system and fuels including various 

content of RME B7, B20, B30 and B100. The studies 

were conducted, according to international procedures 

VERTdePN, among other things, at the same time 

they also covered a system combination of DPF + SCR. 

In determined and undetermined conditions of 

engine operation both limited and non standardized 

components of exhaust gas, as NO2, N2O, NH3 and nanoparticles, 

were taken into consideration [10]. 

The most significant conclusions: 

• increasing content of rme in the fuel feeding 

an engine without the system of exhaust fumes 

processing results, at larger engine load, in increased 

NOx emission and lower CO and HC emission; 

at variable conditions of load these tendencies 

are not so distinct and only B100 causes 

distinct increase of NOx emission; 

• in case of an engine with SCR system no differences 

were found in NOx emission and NOx reduction 

level at growing content of rme in fuel; 

however, emission of co and hc decreased; 

• effectiveness of DPF filtering is very high – up 

to 99.9%. In case of application of only the SCR 

system it is possible to notice – for partial loads 

– slight reduction of nanoparticle emission (ranging 

from 10-20%, similarly as in case of oxidizing 

catalyst). Only at full load of the engine there is 

a slight increase in the amount of nanoparticles 

caused by secondary formation of nanoparticles; 

• without the system of successive exhaust fumes 

processing growing content of RME in fuel causes 

shifting of quantitative distribution of solid 

particles in direction of smaller sizes and diminished 

amount at full load; 

• 

change in exhaust fumes recirculation degree allows 

to lower the NOx emission but has no influence 

on emission of NO2 (the ratio of NO2 to NOx 

grows) lowers in small extent the emission of NH3 

(present only in case of the SCR system), how-


ever, it increases the number of nanoparticles in 

test bed trials by 43% for diesel oil and by 16% for 

B100 fuel (RME). 

Summary – recommendations 

for oil manufacturers, transport 

companies and other users 

1. The use of bio-fuels with higher content of FAME 

usually requires shorter periods between changes of 

lubricating engine oil. 

2. Low resistance to oxidizing of bio-components 

used in bio-fuels results in the fuel`s limited expiry period, 

after which they can be hazardous for safe operation 

of engines, and induce accelerated, progressive 

degradation of lubricating engine oils. 

3. Regular monitoring of lubricating oil quality in 

an engine running on bio-fuel enables early enough 

determination of rapid decrease in its functional-operational 

properties, which threatens safe operation of 

an engine. It allows to optimize oil exchange periods in 

particular operational conditions. 

Literature 

Caprotti R., Breakspear A., Klaua T., Weiland P., Graupner O., Bittner M.; 

„RME Behaviour in Current and Future Diesel Fuel FIE’s“ - SAE Technical 

Paper No 2007-01-3982. 

Chausalkar A., Mathai R., Sehgal A.K., Majumdar S.K., Koganti R.B., 

Malhotra R.K., Kannan R.K., Prakash C., „Performance Evaluation of B5 

Bio-Diesel – Effect On Euro II Diesel Engine & Engine Lubricant”- SAE 

Number 2008-28-0122. 

Simon A.G., Watson and Victor W. Wong; “The Effect of Fuel Dilution 

with Biodiesel on Lubricant Acidity, Oxidation and Corrosion – a 

Study with CJ-4 and CI-4 PLUS Lubricants” - 2008 Diesel Engine- 

Efficiency and Emissions Research (DEER) Conference – August 7th 1) 

2) 

3) 

2008. 

4) Thornton M.J., Alleman T.L., Luecke J., McCormic R.L.; “ Impacts 

of Biodiesel Fuel Blends Oil Dilution on Light-Duty Diesel Engine 

Operation” - 2009 SAE International Powertrains, Fuels, and 

Lubricants Meeting, June 15-17, 2009 Florence, Italy. 

5) Urzędowska W., Stępień Z.; „Porównawcze badania degradacji 

oleju smarowego w silniku wysokoprężnym z bezpośrednim, 

wysokociśnieniowym wtryskiem paliwa, zasilanym standardowym 

olejem napędowym lub olejem napędowym zawierającym FAME” 

– Dokumentacja INiG nr 0085/TE/08. 

6) Stępień Z., Urzędowska W.; „Badanie wpływu oleju smarującego silnik 

o zapłonie samoczynnym na emisję cząstek stałych w spalinach przy 

zasilaniu silnika paliwem z biokomponentami” - Dokumentacja ITN 

nr 4085/2007. 

7) Stępień Z., Urzędowska W., Rożniatowski K.; „Badanie form zużycia 

układów wtrysku paliwa w czasie eksploatacji silników z zapłonem 

samoczynnym” – Dokumentacja INiG nr 0938/TE/08. 

8) Caprotti R., Breakspear A., Graupner O., Klaua T., Kohnen O.; „Diesel 

4. Usually synthetic base oils demonstrate larger 

resistance to accelerated degradation caused by 

co-reacting with bio-fuels on condition that there is 

compatibility between applied refining component 

package in oil and the fuel used. 

5. Relevant selection of lubricating oil (properties of 

oil base and refining additive package) suitable for its 

operation conditions, the content of bio-component 

in fuel and engine construction have crucial influence 

on frequency of oil exchange periods. 

6. The use of bio-fuels, especially of inappropriate 

quality, creates the risk of faster formation of various 

kinds of sedimentation on inner and outer surfaces of 

fuel injection systems, which is enhanced by impurities 

existing in fuel which include ions of metals (especially 

of Sodium and Zinc). These sedimentations cause increased 

emission of components harmful for the environment, 

including solid particles and are the cause of 

various dysfunctions of fuel injection systems. 

The authors are researchers at the Oil and Gas 

Institute in Krakow 

Injector Deposits Potential in Future Fueling Systems“ - SAE Technical 

Paper No 2006-01-3359. 

9) Philip J.G, Dingle and Ming-Chia D.Lai.; “Diesel Common Rail and 

Advanced Fuel Injection Systems” - 2005 SAE International. 

10) “Combinations of Measures for Reduction of NOx & Nanoparticles 

of a Diesel Engine” Czerwiński J., Stępień Z., Oleksiak S., Andersen 

O. – International Congress on Combustion Engines, Radom Poland 

16–17.06.2011. 

11) „Research on Emissions and Engine Lube Oil Deterioration of Diesel 

Engines with Biofuels (RME)”; Stępień Z., Czerwiński J., Urzędowska W., 

Oleksiak S. – SAE World Congress, Detroit April 12th – 14th 2011, SAE 

Paper no 2011-01-1302. 

12) „Influences of Biocomponents (RME) on Emissions of a Diesel 

Engine with SCR” Czerwiński J.; Stępień Z.; Oleksiak S.; Andersen O. 

- International Conference EURO OIL&FUEL 2010 „BIO-COMPONENTS 

IN DIESEL FUELS - Impact on emission and ageing of engine oil,” 

Kraków, 24-26.11.2010, publication NAFTA-GAZ No 3/2011 pp. 198- 

208. 

13) “Influence of Diesel fuels containing FAME on engine lube oil 

degradation and particulate matter (PM) emission”, Stępień Z., 

Urzędowska W, Oleksiak S, Czerwiński J., Andersen O., International 

Conference EURO OIL&FUEL 2010 „BIO-COMPONENTS IN DIESEL 

FUELS - Impact on emission and ageing of engine oil,” Kraków, 24- 

26.11.2010, publication NAFTA-GAZ No 4/2011 pp. 272-281. 

14) 

„Research on Emissions and Engine Lube Oil Deterioration of Diesel 

Engines with Biofuels (RME)”; Stępień Z., Czerwiński J., Urzędowska W., 

Oleksiak S. – SAE World Congress, Detroit April 12th – 14th 2011, SAE 

Paper no 2011-01-1302. 


13

136 

Among these methods, microbiological processes 

(called MEOR – Microbial Enhanced Oil Recovery) 

are beginning to play an increasingly signifi cant 

role. They possess several merits with direct translation 

to economical benefi ts. Firstly, they do not consume 

meaningful amounts of energy and do not depend 

directly on oil prices, as many chemical agents 

do. Secondly, they are completely safe for personnel 

and the natural environment. The next virtue is their 

relatively low cost and utilization of components 

originating from renewable sources. Microorganisms 

discharge various products, among which the most 

signifi cant are acids, solvents, gases, polymers and 

surfactants. 

Many microorganisms have also the ability to degrade 

various hydrocarbons, including aliphatic ones 

(paraffi n) with long chains and the ability to modify 

permeability of the reservoir rock. Even though each 

of the listed agents may have advantageous infl uence 

on oil recovery in general, in case of ‘employment’ of 

microbes, combined action of at least a few of them 

occurs, which is also an advantage, compared to the 

application of chemical compounds. 



Microbiological processes and their application in oil industry 

Bio-cleaning: employment off er 

for microorganisms 

JOANNA BRZESZCZ, PIOTR KAPUSTA, ANNA TURKIEWICZ 

Current processes allow to extract about 1⁄3 – 1/2 of oil reserves contained 

in deposits. The remaining amount may become at least 

partially available thanks to the application of the so-called intensifi 

cation methods (EOR – Enhanced Oil Recovery). 

Intensifi ed oil extraction 

and issues related to 

paraffi n precipitation 

during extraction 

Microbiological processes can be divided into two 

principal groups. The fi rst of them is removal of paraffi 

n sediments precipitated during exploitation. These 

sediments may appear on the bore equipment, inside 

the bores as well as in the deposit. The principal mechanism 

supporting the removal of sediments is the ability 

of microbes related to their ability to degrade hydrocarbons. 

Basically, long-chain hydrocarbons are 

converted into compounds of a simpler structure in 

which oil fl ow occurs. Additionally, the process may 

be stimulated by discharged solvents and alcohols. In 

this case, there is no need to input organic substances, 

which would stimulate growth of microbes – the 

source of carbon and energy are hydrocarbons. Favorable 

eff ect is achieved by the introduction of mineral 

components though.


Slightly other mechanism is used during the socalled 

bore/deposit stimulation. In this case, the ability 

of microbes is used to produce in anaerobic conditions 

large volumes of gases (CO2, H2 and CH4) alcohols, 

solvents and surfactants. These substances are formed 

from organic source of carbon introduced into a deposit 

– most frequently it is carbohydrate included in 

molasses. Microbes combined with organic source of 

carbon make a deposit some kind of a gigantic underground 

bioreactor, whose output has to be enforced 

from time to time by additional pumping in of molasses 

and occasionally non organic growth agents. Frequently, 

stimulation processes are coupled with hydration 

of the deposit. 

The first documented microbiological treatment 

was executed by the Mobil Company (at present the 

Exxon-Mobil Concern) in 1954. Further progress in this 

field is mutually credited to D. Hitzman and J. Karaskiewicz 

who independently in the USA and in Poland 

elaborated and implemented successfully microbio- 

logical methods on industrial scale. At present, there 

are many microbiological firms in the world preoccupied 

with commercial operations like this. Their largest 

successes concern exploited deposits, the output 

of which is marginal and implementation of this process 

results in substantial economical benefits at small 

costs and risk. Also in Poland, it seems that after many 

years the microbiological processes return again. 

Issues related to 

production of biogas 

The necessity to fulfill the requirements of the European 

Union directives which impose the obligation to 

increase energy consumption from renewable sources 

and reduce uncontrolled emission of methane from 

various industrial branches, including the sector of 


137

138 

waste management and agriculture, results in growing 

interest in biogas technologies. Development of 

the domestic market of biogas is favored by projects 

targeted at creating optimal conditions for development 

of installations producing agricultural biogas. In 

the countries where the bio-gas technologies have 

been used for many years in numerous operating installations 

(e.g. in Germany, there are about 4 thousand 

biogas plants), more and more frequently, apart from 

converting biogas into electric and heat energy there 

are installations for making biomethane from biogas, 

which is then pumped into the gas mains or used in 

automotive industry. 

Each symptom of appearance of degradation 

factor should be eradicated as 

soon as possible or treated in a relevant 

way depending on its nature. 

The simplest way is prevention of 

course, which consists in periodical 

control of rheological parameters of 

the drilling fl uid. 

The principal cause for growing interest in technology 

of biogas application in the power industry is its 

relatively high energy effi ciency in comparison with local 

production of electric and heat energy, especially 

in case of problems with heat reception. Biogas after 

treatment and adjustment to the parameters of natural 

gas and before pumping into the gas distribution 

mains is subject to tests in order to determine physicochemical 

parameters which decide about its compatibility 

with high methane natural gas (content, calorific 

value, Wobbe index, humidity content). These tests 

constitute the basis for settlements between the gas 

producer (supplier) and recipient. 

Apart from the above tests, attention should be paid 

to bacteriologic tests, the execution of which seems to 

be justifi ed especially in case of biomethane made on 

the basis of agricultural biogas. Contemporary studies 

on corrosion reveal new mechanisms of this process 

which have been omitted so far in anti-corrosion protection 

of pipelines. Microbes, which include aerobic 

and anaerobic bacteria and fungi appearing in soil, water, 

air and also in transported fuel, due to their metabolic 

abilities may also cause damage to pipeline walls 

and protective coats, which creates conditions for further 

corrosive processes. The bacteria in pipelines may 

form the so-called bio-fi lm i.e. a coating constructed 



from bacteria cells and products of their metabolism 

on inner surfaces of the tubes. The result of microorganism 

adhesion and their development in such specifi 

c environment is the process of bio-corrosion. 

Life activity of microbes depends on numerous factors: 

the presence of water, oxygen or other substrates 

inevitable in the metabolic processes and also relevant 

reaction of the environment, temperature and 

presence of hydrocarbons. The growth of fl ora occurs 

most intensely on the borderline of water/fuel phases 

where water is the principal supplier of the factor 

of live organisms and microelements. While fuel, steel 

and organic coatings are suppliers of energy compounds, 

chiefl y carbon, and other necessary components. 

In normal conditions hydrogen coating protects 

steel against further decomposition, however, at the 

presence of sulfates and desulfurizers cathode depolarization 

occurs and iron is oxidized. The diff erence 

between the potentials was discovered between microbes 

and metal, therefore it is believed that corrosion 

caused by microbes has electrochemical background. 

Due to the fact that the knowledge concerning 

the presence of microbiological contaminations in biomethane 

is crucial in taking decisions about the application 

of this kind of gas in a distribution system of 

natural gas, the examination of biogas and biomethane 

samples originating from diff erent kinds of technology 

is advisable in this respect, including the ones 

based on various kinds of substrates. It allows to determine 

the level of hazard for the mains and gas fi xtures 

caused by biomethane made on the basis of biogas 

from agricultural biogas plants. A question has to be 

asked whether the kind of raw material subject to fermentation 

in order to obtain biogas exerts any infl uence 

on the presence of microbes responsible for corrosive 

processes in biogas. 

Drilling fl uid as the 

environment for microbes 

For many years the Oil and Gas Institute has been 

conducting studies on the infl uence of microorganisms 

on degradation of drilling fl uids. These studies 

have been the subject of research projects, statutory 

works and commissions for the requirements of domestic 

oil industry. 

It is necessary to begin with the statement that 

degradation of drilling fl uids is caused by factors of 

chemical, physical and biological character. Degrading 

processes exert very important infl uence on drilling 

technology, because each contamination of fl uid 

is related to change of its rheological parameters and


this, in turn, causes complications in 

drilling of a bore and even the necessity 

of changing the technology. The 

knowledge of mechanisms of degradation 

of drilling fluids and their influence 

on rheological parameters allows relevant 

planning of the boring process or 

its possible correction in drilling a bore. 

The factors causing degradation or contamination 

of the drilling fluid have 

negative influence on: 

• 

• 

• 

• 

the progress of drilling, 

technical condition of a bore, 

failure frequency (e.g. catching of 

the tubes, formation of slides), 

the cost of bore making. 

In order to diminish the influence 

of negative phenomena, it is necessary 

first of all to have a good geological insight 

– it is the key to optimization of 

boring both in technical and economical 

respect. Especially important is the 

knowledge of possibilities of inflow of 

deposit water to the bore, because it is 

one of the most significant degradation 

factors. Different chemical compounds 

and also microorganisms present in the 

deposit fluid get to the drilling fluid 

along with deposit water. 

Each symptom of appearance of 

degradation factor should be eradicated 

as soon as possible or treated in a relevant 

way depending on its nature. The 

simplest way is prevention of course, 

which consists in periodical control 

of rheological parameters of the drilling fluid. In case 

of appearance of any symptoms of fluid degradation, 

measurements should be continued until contamination 

has been eradicated. 

Processes of drilling fluid degradation consist in the 

loss of initial rheological properties of the fluid (i.e. viscosity, 

flow margin, structural durability and such parameters 

as density and pH indicator) under the influence 

of physical, chemical and microbiological factors 

that occur during boring. First of all, among the factors 

that cause degradation, the influence of particles 

of drilled rock on the properties of drilling fluid has to 

be mentioned, contact with deposit water (brine) and 

also contact of the fluid with hydrogen sulfide. 

In industrial practice frequently considerable difficulties 

appear, caused by fermentation decomposition 

of the fluid circulating in the bore. Biogenic processes 

generating particular chemical reactions in the 

environment of polymer drilling fluid render it impos- 

Photo 1. Microorganisms isolated from the drilling fluid 

Photo 2. Examples of hydrocarbon degradation by microorganism cultures 

sible to keep correct fluid parameters. Consequently, 

it leads to lower progress of drilling and even causes 

the necessity of exchanging the degraded drilling fluid 

whose rheological properties do not allow correct 

progress of drilling. 

Difficulties related to microbiological decomposition 

of drilling fluids may also cause other serious 

consequences faced in case of bores included in the 

structure of an underground gas reservoir. When the 

fluid is not sufficiently protected against biodegradation, 

then in such bores activation of bacteria occurs. 

Increased activity of microorganisms, which happens 

during the operation of underground gas reservoirs is 

exceptionally dangerous, especially when in degraded 

drilling fluid appear or dominate bacteria producing 

hydrogen sulfide. Introducing bacteria from the outside 

or activation of autochthonous ones causes not 

only difficulties in operation of very important, strategic 

objects like underground reservoirs but it may also 


139

140 

adversely infl uence the operation of the wells. It results, 

among other things, in disturbances in hydrocarbon 

fl ow (processes of biological colmatage of reservoir 

rocks) and increase in H2S content in deposit media. It 

concerns especially the deposits, which due to advantageous 

geological parameters have been converted 

into underground gas reservoirs. 

Laboratory tests executed at the Oil and Gas Institute 

on diversifi ed and representative material directly 

refer to the phenomena appearing in domestic deposits. 

Results of the tests illustrate microbiological state of 

drilling fl uids applied in drilling in diff erent regions of 

Poland. Microorganisms isolated from sampled fl uids 

were used as initial material for studies on selection of 

optimal preventive methods against processes of biodegradation 

of drilling fl uids. A series of studies were 

executed concerning processes of microbiological 

degradation of polymers used in technology of drilling 

fl uids. They included the following polymers: 

• 

• 

• 

• 

• 

carboxymethyl cellulose, 

carboxymethyl starch, 

chemically modifi ed starch (with MgOH) subject 

to thermal process, the so-called paste and crosslinked 

starch, 

PHPA – partially hydrolyzed polyacrylamide, 

natural xanthan polymer called XCD (polysaccharide), 

the product of metabolism of bacteria Xantomonas 

campestris. 

Research interests are also focused on the analysis 

of changing the physical and chemical properties of 

drilling fl uids and polymer compound solutions applied 

in drilling technology under the infl uence of bacteria. 

Changes were examined concerning such parameters 

as; plastic viscosity, apparent viscosity, fl ow 

margin, structural durability and such parameters as 

density and pH indicator. Isolated microbes are used 

for further studies concerning protection of water-dispersive 

polymer drilling fl uids against degradation. 

Modern antibacterial preparations are tested for contaminated 

polymer drilling fl uid and contaminated 

base water. Selected preparations of top effi ciency are 

applied on industrial scale. 

Apart from producing an especially dangerous 

compound such as hydrogen sulfi de, the activity of 

microbes in the drilling fl uid consists fi rst of all in the 

formation of carbon dioxide (in the result of metabolic 

processes), which may cause lowering of the fl uid 

pH indicator. Change of the initial alkaline reaction of 

drilling fl uid is the basic signal of biodegradation processes. 

It testifi es to the presence of live bacteria cells in 

examined material. 

Some of the microbes entering the drilling fl uid 

have the ability of decomposing natural, semi-synthetic 

and synthetic polymers constituting the basic 



Even though many kinds and species 

of microorganisms possess actively operating 

mechanisms for catabolism of 

a particular kind of hydrocarbon, up till 

now there has been no strain isolated 

which would be able to degrade the 

entire spectrum of substances originating 

from oil. Thus, the formation of 

microorganism consortia (sometimes 

called bio-formations), including microorganisms 

with various metabolic 

profi les seems to be the most correct 

approach. 

components of the fl uid circulating in the bore. It is an 

adverse phenomenon from the point of view of tasks 

which the drilling fl uid fulfi ls in a bore. The polymer 

drilling fl uid decomposed by bacteria loses its properties, 

therefore relevant protection of the fl uid against 

biodegradation is so important in borehole technology. 

In this way, the processes of decomposition of drilling 

fl uids and generation of biogenic gases, enzymes 

and other products of metabolism may really rapidly 

change the initial chemical composition of the drilling 

fl uid, modifying its rheological parameters. 

An essential issue is also the origin of bacteria growing 

in discussed environment. Apart from their presence 

in drilled geological strata and in deposit brines 

some of ther microbes is introduced to the drilling fl uid 

in technical operations themselves. So far, no attention 

has been paid to this kind of factor, frequently using 

contaminated water featuring high level of microbiological 

contamination for making the drilling fl uid. 

Bioremediation of areas 

contaminated with oilrelated 

substances 

Due to progressing degradation of the natural environment, 

the issues of biological cleaning of water 

and soil from xenobiotics (including hydrocarbons), 

hard to degrade and accumulated in the environment, 

gain in popularity. Polluting the environment with oil 

forms a complex chemical system in which aliphatic 

hydrocarbons and more toxic aromatic ones are predominant. 

A special group is formed by polycyclic aromatic 

hydrocarbons (PAH-s) e.g. anthracene, pyrene or 

benzo[a]pyrene, which are a serious hazard for human


life and health (they are the most toxic and carcinogenic 

components appearing in oil). Contamination 

of soil with these substances is reflected by disturbed 

relation of macro elements C:N:P, which in unpolluted 

soil should be at the level of 100:10:1. In soil samples 

collected from areas of storage of oil-related substances 

(e.g. mining pit) this relation is drastically moved 

towards carbon, which negatively influences correct 

vegetation of plants resulting even in their death. Due 

to this fact, removal of these substances from the environment 

and restoring the natural conditions in contaminated 

areas is important and fundamental for all 

cleaning technologies. The process of biodegradation 

of these substances proceeds very slowly, due to poor 

solubility and bio-availability of these compounds. 

Form many years remediation technologies have 

been successfully applied, including methods related 

to utilization of natural metabolic abilities of microbes 

(bioremediation) and plants (phytoremediation). 

Technologies based on metabolic routes of autochthonic 

microorganisms inhabiting areas contaminated 

with hydrocarbons are a great concern in Poland 

and abroad. Microbes, which use hydrocarbons as a 

source of coal and energy are the basis of success in 

bio-cleaning process. 

The progress of remediation process of soils contaminated 

with oil-related substances depends on: 

• qualitative and quantitative content of microbe 

population appearing in a particular area, 

• biological availability of bio-products formed during 

bioremediation, 

• adaptation abilities of microbes to variable environment 

conditions, 

• abilities of degradation of particular types of 

xenobiotics. 

Microbes participating in effective decomposition 

of aliphatic hydrocarbons appear commonly, which 

testifies to much better availability of these substances 

as substrates for microorganisms. While aromatic hydrocarbons, 

especially cyclic aromatic hydrocarbons 

belonging to the PAH group feature high resistance 

to degradation due to limited bio-availability of these 

compounds. Some types of bacteria have documented 

abilities of hydrocarbon degradation: Acinetobacter, 

Mycobacterium, Pseudomonas, Rhodococcus and Sphingomonas, 

as well as fungi like e.g. Coniothyrium, Fusarium 

Phenerochaete and Pleurotus. Even though many 

kinds and species of microorganisms possess actively 

operating mechanisms for catabolism of a particular 

kind of hydrocarbon, up till now there has been no 

strain isolated which would be able to degrade the entire 

spectrum of substances originating from oil. Thus, 

the formation of microorganism consortia (sometimes 

called bio-formations), including microorganisms with 

various metabolic profiles seems to be the most correct 

approach. 

The basic advantage of bioremediation methods is 

their economic aspect (one of the least expensive soil 

cleaning methods) and minimal influence on human 

health and the ecosystem assuming that non pathogenic, 

autochthonic bacteria strains are applied. 

Cleaning works at contaminated areas can be 

executed: 

• Ex-situ – cleaning of extracted soil is done outside 

the area of contamination, 

• In-situ – cleaning of contaminated soil is done at 

the site of its occurrence. 

For many years, the Microbiology Department and 

Department of Exploitation Technology of Deposit Liquids 

at the Oil and Gas Institute have executed works 

related to cleaning of the old mining pits contaminated 

with oil-related substances in the area of the Subcarpathian 

Voivodship. 

Literature: 

1) 

2) 

3) 

4) 

5) 

6) 

7) 

8) 

9) 

The authors are research workers in Microbiology 

Department of Oil and Gas Institute in Krakow 

Brown F.G: Microbes: The practical and environmental safe solution 

to production problems, enhanced production, and enhanced 

oil recovery. Midland, Texas, USA, SPE Permian Basin Oil and Gas 

Recovery Conf., 1992, 251-259. 

Bryant R. et al.: Biotechnology for heavy oil recovery. Beijing, China, 

7th UNITAR Int. Conf. on Heavy Crude and Tar Sands, 1998. 

Kapusta P., Turkiewicz A.: Problematyka biodegradacji polimerów 

syntetycznych i półsyntetycznych stosowanych w technologii płuczek 

wiertniczych. Nafta-Gaz 2003; 59 350 – 354. 

Karaskiewicz J.: Zastosowanie metod mikrobiologicznych w 

intensyfikacji eksploatacji karpackich złóż ropy naftowej. Katowice, 

Wyd. Śląsk 1974. 

Steliga T.: Bioremediacja odpadów wiertniczych zanieczyszczonych 

substancjami ropopochodnymi ze starych dołów urobkowych, Prace 

Instytutu Nafty i Gazu nr 163, Kraków 2009. 

Steliga T., Jakubowicz P., Kapusta P.: Optimization research of 

petroleum hydrocarbon biodegradation in weathered drilling wastes 

from waste pits, Waste Manag. Res. 2010; 28, 1065-75. 

Steliga T., Jakubowicz P., Turkiewicz A.: Metoda oznaczania substancji 

ropopochodnych w glebie i ściekach kopalnianych. Inżynieria 

ekologiczna 2003; 8, 71-80. 

Wirick M.G.: Anaerobic biodegradation of carboxymethylcellulose. 

J. Water Pollut. Control Fed. 1974; 46, 512-521. 

Youssef N., Elshahed M.S., Michael J. McInerney M.J.: Microbial 

Processes in Oil Fields: Culprits, Problems, and Opportunities. [w] Allen 

I. Laskin, Sima Sariaslani, and Geoffrey M. Gadd, editors: Advances in 

Applied Microbiology, Vol 66, Burlington: Academic Press, 2009,141-251. 


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142 

Unconventional oil and gas – 

adding price competetive reserves 

ARTICLE FROM ‘TECHNOLOGY OUTLOOK 2020’ DNV PUBLICATION 

During the next decade, horizontal drilling and hydraulic fracturing (fracing) technologies 

for gas production will spread worldwide, and add considerable amounts of shale gas 

at a competitive price to the world’s energy production. New and more effi cient technologies 

for water treatment and usage during fracing will be available. Extraction of unconventional 

oil will still be limited, due to the environmental challenges and relatively high cost. 

Introduction 

The age of cheap oil is over. Over the last 25 years, for 

every four barrels of oil consumed, only one has been 

discovered, and this ratio will probably worsen. Daily 

world oil consumption is about 85 million barrels (mbd), 

and oil production is expected to never exceed 95 mbd. 

Companies are tapping into more costly, lower quality, 

and more unconventional oil sources. Unconventional 

oil, e.g. oil sands, comes with severe environmental challenges 

and is more expensive to extract. 

While oil is primarily used for transport, natural gas 

is dominantly used for power generation. And while unconventional 

oil will continue to represent only a small 

part of oil production also in the next decade, unconventional 

gas is set to change the entire gas market due 

to its competitive price. 

Unconventional gas sources are shale gas, coalbed 

methane, and tight gas. As natural gas is cleaner both in 

production and in use, and also more abundant, the demand 

for gas is expected to grow almost twice as much 

as for oil and be in the range of 4 trill m 3 /yr by 2020. 


Solar steam for EOR 

In 2009, 25% of California’s total natural gas consumption 

was used for steam production for Enhanced 

Oil Recovery (EOR). By using EOR, 40% more 

oil can be extracted. The same method can also be 

applied to produce steam for production of oil from 

oil sands. 

Using solar energy instead of gas could provide substantial 

cost and CO2 savings. In sunny regions, concentrated 

solar parabolic trough systems could produce 

large quantities of steam at a constant price of US$3/ 

MBtu, well below US$5-20/MBtu costs based on natural 

gas. These systems consist of long parabolic mirrors that 

focus the solar energy onto a heat transfer fl uid. Solargas 

hybrid steam could reduce current annual fuel costs 

by about 20%. By 2020 this percentage is expected to 

increase. 

Larger replacements will require effi cient thermal 

energy storage solutions, such as molten salt. Areas for 

solar steam production might have to compete with solar 

electricity generation. 

Solar steam for EOR Horizontal drilling in shales 

Steam from concentrated solar power. 

Source: Grist.org 

Horizontal drilling bit for shale gas. 

Source: Baker Huges

Horizontal drilling in shales 

3-dimensional, drilling-bit positioning and mud motors 

are standard tools that enable directional drilling for 

up to 10 km. Directional drilling is needed to penetrate 

and follow geological gas formations effectively, in order 

to exploit gas from unconventional reservoirs.In shale gas 

formations, where horizontal drilling is used the productivity 

of horizontal wells can be as much as 400% higher 

than for vertical wells, but their costs are only 80% higher. 

The Marcellus shale gas formation is, the 2 nd largest 

natural gas field in the world, extends from New York to 

West Virginia, and holds 14 trillion m 3 of gas. (In comparison, 

the Shtokman gas field in the Barents Sea holds 

about 3 trillion m 3 of natural gas). It is expected that horizontal 

drilling will be central in the development of this 

gas formation by 2020. 

Hydraulic fracturing 

Unconventional gas is usually tightly trapped in rock 

formations, thereby preventing high production rates. 

In order to achieve commercially viable flow rates, hydraulic 

fracturing (or fracing) can be used. This method 

creates fractures in the bedrock from the injection of a 

highly pressurized fluid (1000 bars). Fracing requires large 

volumes of water, typically in the range of 21,000 m 3 for a 

single shale gas well. In addition, chemicals to reduce viscosity 

are injected, and sand to hold the fractures open. 

Although the industry has used fracing on tens of 

thousands of wells for the last 40 years, there is concern 

regarding contamination of groundwater in new shale 

gas developments. It is therefore expected that public 

opinion could emerge as the biggest risk. 

Mobile water treat ment 

As the fracing process consumes considerable volumes 

of water, water recycling and disposal are essential 

Hydraulic fracturing Oil sand 

The yellow tanks hold frac water, the red tanker holds proppant; hydraulic 

pumps are in the center. 

Marcellus Shale Well. Source: Chesapeake Energy Corporation 

for further unconventional gas production. Many of the 

production sites are remote and lack water infrastructures. 

Fresh and waste water are sometimes trucked. 

Mobile, truck-mounted systems for water treatment 

are currently being developed and use a combination 

of electro-coagulation and electroflotation separation 

techniques. Water with up to 0.3 kg/l of total dissolved 

solids, and with particle sizes of less than 1 micron can 

be treated. The cleaned brine is reused in the fracing 

process, reducing the amount of water that needs to be 

trucked by 10-40%. 

By 2020, fracing will occur increasingly in more 

densely populated areas, leading to greater use of this 

mobile water treatment technology. 

The adoption of this technology in other water intensive 

industries is anticipated. 

Oil sand extraction 

Canada’s oil sands are an important source of secure 

and reliable energy, but there are environmental impacts 

that demand responsible mitigation. Viscousity of 

oil sands is about 10 times higher than peanut butter at 

room temperature. The oil in oil sands is really called bitumen 

and oil sands gets its name because the bitumen 

is trapped in a matrix of about 83% sand, 10% bitumen, 

and a remainder of clay and water. Oil produced from oil 

sands currently release 2.2 times more GHG emissions 

per barrel than conventional oil. 

The energy and water demand in oil sands extraction 

is not sustainable – water is a limiting resource in Alberta 

and conventional energy consumption continues 

to increase greenhouse gas emissions. 

New, lower impact technologies are being explored 

but need to be proven, demonstrated and applied. Oil 

sands will become cleaner towards 2020 but will not 

reach the same environmental footprint as conventional 

oil extraction. 

www.dnv.pl/gaz 

1/2 barrel of water is consumed per barrel of oil produced. 

OIL SAND EXTRACTION 


143

144 

Future refi neries – pointing 

to a sustainable future 

ARTICLE FROM ‘TECHNOLOGY OUTLOOK 2020’ DNV PUBLICATION 

Future refi neries will face a number of challenges including: (1) complying with stricter emissions requirements, 

(2) maintaining system integrity while processing opportunistic crudes with varying concentrations 

of corrosive components, (3) processing unconventional fuels, and (4) meeting fuel chemistry 

targets based on product mix changes. This will lead to the implementation of new processes to utilize 

CO2, advanced materials for corrosion resistance, intelligent operations, and secure IT systems to extract 

the data necessary for making timely decisions. Refi neries will also include integrated biorefi neries. 

Introduction 

In 2009 there were 661 refi neries worldwide, with a 

combined capacity of 87 million bbl/d. These refi neries 

contribute almost 6% of the annual global stationary CO2 

emissions. By 2020, 47% of refi nery capacity additions 

will be in the non-OECD Asia- Pacifi c region and 22% in 

the Middle East. In Europe and North America, there will 

be consolidation and plant improvement, with debottlenecking, 

improved effi ciency, and reductions in emissions. 

In Europe, demands for middle distillates, such as 

diesel and jet fuel, has increased, with a concomitant decrease 

in the share of gasoline. 

This trend is expected to extend to other parts of 

the world. South America will need additional refi ninery 

capacity to process new heavy oil discoveries and 

additional downstream petrochemical facilities to add 

value to the crude oil. These changes in supply and demand, 

combined with stricter emission requirements, 

increase the need for refi neries that are able to operate 

dynamically. 

Utilisation of CO2 

Utilisation of CO2 in refi neries will take three basic 

forms: 1) direct implementation of CO2 in processes, 

2) use of CO2 as a feedstock for production of fuels and 

chemicals, and 3) use of CO2 in producing biomass, which 

is then converted to fuels and chemicals in various ways. 

Insertion of CO2 into organic molecules, such as epoxides, 

to produce polymers is being developed by several 

companies. Dry reforming of methane, using CO2 instead 

of water to produce a variety of hydrocarbon fuels, was 

developed almost three decades ago, but is being revitalised 

through new catalysts and process improvements. 

CO2 has also been used in the production of methanol, 

syngas, ethylene, and formic acid through thermochemical 

and electrochemical processes. These 


processes will be combined in a variety of ways that 

are tailored towards the needs of specifi c refi neries. 

Integrated biorefi neries 

Integrated biorefi neries that produce both fuels and 

chemicals, replacing petrochemicals, will become increasingly 

attractive as a way to utilize CO2 and to avoid 

using fossil fuels as feedstocks. The biorefi neries currently 

processing ethanol or biodiesel are simple, singleproduct 

systems. 

However, it is now apparent that biomass can be 

used not only to make fuels, but also other chemicals. 

Furthermore, biomass can be thermally converted to 

syngas or formic acid, which are then feedstock for dropin 

hydrocarbons (also called renewable hydrocarbons), 

which are indistinguishable from those made in conventional 

refi neries. 

Finally, biorefi neries will incorporate a number of 

processes that will use wastewater and CO2 to manufacture 

unique chemicals that are not accessible to 

conventional refi neries. For example, bio-char, a residue 

from thermal processing, is nutrient-rich and can 

be used as fertilizer. 

Intelligent operations 

Refi ning companies use several simulation, analyses, 

control, and optimization technologies for operating 

and maintaining their plants. These include process 

simulation and modelling software, linear programming 

models, advanced process control and real-time 

optimization tools, and plant historians that are used 

to capture and store large amounts of continuous realtime 

data streams from plant sensors into a database for 

real-time and future analysis. 

The current stand-alone auto-mated forecasting 

and control approaches in refi nery operations will be

Distillation Capacity 

World crude oil distillation capacity. 

Source: U.S. DOESource: Baker Huges 

World Unconventional Liquids 

The share of biofuels in refi ning will increase. 

Source: EIA 2010 

Liquid Production in 2020 

Change in projected world liquid production in 2020. 

Source: EIA 2010 

Sensoring 

Wireless sensors placed in a refi nery terminal 

storing fuel grade ethanol. 

increasingly integrated in the future. Plant-wide process 

modelling tools will be joined with other information 

systems, such as plant historians. 

The combination of advances in nanotechnologies, 

energy harvesting, and wireless communication has enabled 

a burgeoning of small sensors that can monitor a 

variety of parameters, function autonomously, and communicate 

information from remote locations. Thin-fi lm 

sensor elements can be used to measure temperature, 

pH, CO, CO2, hydrogen sulphide, etc. using ink-jet printing 

technologies. The manufacturing technology for these 

sensors will continue to advance over the next decade 

to enable the deployment of a multitude of sensors in a 

network, thereby effi ciently capturing whole plant operations. 

The sensors will be integrated with modelling and 

simulation tools so that plant integrity can be maintained 

under changing feedstock chemistry, and process conditions 

can be optimised for improved energy effi ciency. 

The large amounts of sensor data available will require 

superior data mining techniques as well as improved data 

security. 

Advanced materials 

Maintaining plant integrity under varying crude chemistry 

conditions will require more corrosion resistant materials. 

New process chemistries that utilize non-crude feedstock 

will necessitate development of materials that are 

resistant to corrosion in a diff erent range of environments 

to those encountered in current refi neries. Advanced Nibase 

alloys and high temperature coatings will be further 

developed to improve their high temperature oxidation resistance 

and their corrosion resistance to various acids in 

alkylation processes. Chromium and aluminium-containing 

Ni-base alloys and coatings that resist metal dusting will be 

introduced. 

Composite materials are often problematic in refi neries 

due to concerns related to their lack of resistance to hydrocarbons, 

their potential for contaminating the product 

stream, their poor fi re safety, and their electrostatic charge 

build-up. Research in nanocomposite materials to improve 

fi re resistance, reduce hydrocarbon permeability, and improve 

electrical conductivity will yield another class of materials 

for the designers of future refi neries. 

Composites embedded with sensors, such as optical 

Bragg grating fi bre sensors for detecting mechanical strains, 

will enable real-time monitoring of piping systems throughout 

the plant. Self-repairing materials, for example embedded 

with hollow microspheres containing epoxy pre-cursors, 

will enable components to withstand local damage temporarily, 

while permanent repair or replacement of parts is organised. 

Specialised, oxide and nitride coatings will be available 

for increased resistance to wear and corrosion in various 

refi nery units. 

www.dnv.pl/gaz 


14

146 

Concept selection 

Risk expenditures – 

quantifying the unexpected 

When evaluating alternative concepts for subsea 

production and processing, novel technology 

and high risks are often prominent factors. In support- 

ing such evaluations, we address a set of key issues: 

• 

• 

• 

• 

ARTICLE FROM ‘SUBSEA, UMBILICALS, RISERS & FLOWLINES’ DNV PUBLICATION 

In a world less than perfect the only thing you can expect for certain is the unexpected. Within the oil 

and gas industry, a profi table project may turn into fi nancial distress – unless the unexpected has been 

quantifi ed and taken into consideration. 

What can go wrong? 

How reliable is the equipment? 

What are the consequences of failure? 

How are unplanned events factored into business 

decision analysis? 

Risk expenditures 

A major part of the risk when operating an oil or gas 

fi eld can be quantifi ed, and thus managed more easily. 

This fact forms the basis for DNV’s approach, and also 

explains why we use the term risk expenditure (RISKEX). 

The RISKEX we help calculate, comprise: 

• The value of lost/delayed production due to unplanned 

events such as system failures 

• The cost of remedial activities such as repair costs 

• The cost associated with leaks into the 

environment 

• The cost associated with safety impairment 

Adding RISKEX to the conventional capital and operational 

expenditures (CAPEX and OPEX) as well as SHE 

considerations, provide a robust and more risk-averse 

foundation when evaluating diff erent concepts. The information 

is valuable in initial as well as later phases of 

a project roll-out. The purpose is to fi nd and mature the 

concept that is most likely to have optimal return to investments, 

operational costs and costs of production related 

risks. 

Technology qualifi cation is a cost driver in off shore 

projects. Therefore, we assess and rank components, systems 

and operations of subsea applications that require 

extensive technology qualifi cation, according to potential 

contribution to production outage. This way, qualifi - 

cation eff orts can be focused on areas with the highest 

yield. By linking inputs used when evaluating RISKEX to 


the information gained during technology qualifi cation, 

we can achieve more accurate estimates as a project 

evolves. 

Production availability 

DNV also evaluates the availability of an integrated 

system. In addition to assessing systems performance, 

analysis of system availability and estimated production 

volume can provide a number of other benefi ts: 

• Cost savings by avoiding attention to areas that are 

non-critical and improving areas where the value 

yield is highest. 

• Discovery of enhancement opportunities during 

the conceptual and design phase, rather than later 

in the production phase, when the cost of change 

is much higher. Furthermore, a modifi cation introduced 

in a production phase is preceded by periods 

of sub-optimal yield and thus income opportunities 

are lost. 

• 

Reduction of key risks through better prioritised 

technology development, qualifi cation and testing. 

Sustainable operations 

As a project approaches execution and more detailed 

design, questions on stocking levels of production-critical 

spare parts may arise. DNV off ers services to establish 

cost-effi cient inventory levels that reduce risk exposure. 

In addition, DNV performs further cost benefi t analyses 

of alternative intervention strategies. 

www.dnv.pl/gaz

OGEC Jasło is one of the leading Polish drilling 

contractors. The company offers a wide spectrum 

of drilling services connected with prospecting 

and extraction of mineral resources. For 

many years, apart from operations on the territory 

of Poland, the company successfully performs 

drilling projects abroad: in Libya, Germany, 

Russia, Czech Republic, Slovakia and Ukraine. 

The company provides its services in compliance 

with international standards (QHSE, Integrated 

Management System), using the latest 

state-of-the-art technologies and a variety of 

drilling equipment. OGEC Jasło is a member of 

International Association of Drilling Contractors 

(IADC) and Polish Geothermal Society (PSG). 

OGEC Jasło offer: 

• drilling and reconstruction of oil and gas 

boreholes, 

• geothermal drilling and special purpose drilling 

(freezing holes, drainage, piezometric 

boreholes, etc.), 

• drilling service (cementation, drilling fluid, 

packer service, Datawell field laboratories). 

Oil & Gas Exploration Company Jasło Ltd. 

ul. Asnyka 6, 38-200 Jasło 

tel. +48 13 446 20 61, fax +48 13 446 32 65 

www.ogecjaslo.com

GAZOPROJEKT is a leader in complex engineering 

and study works for the gas, energy and petrohemical industry. 

WE OFFER OUR CUSTOMERS: 

• Feasibility studies 

• Prefeasibility studies 

• Basic, construction and detailed designs 

• Specialist elaborations and engineering expertises 

• Strenght calculations and process risk analysis 

• Environmental Impact Assessment Reports 

• Investor’s and construction designer’s supervisions 

• Function of Contract Engineer 

• Engineering, Procurement and Construction Management 

www.gazoprojekt.pl

The Polish Petroleum and Natural Gas Market - Instytut Nafty i Gazu

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