Selling LPG to Poland

November 10, 1998, 08:00 CET

Sales of liquefied petroleum gas to Poland are due to be initiated by Statoil during the first quarter of 1999.

The group's five-year target is to sell more LPG to the Poles than it does to Norwegian customers. Sales in Norway currently total about 40,000 tonnes per year, reports Torgrim Kjølberg, vice president for LPG in Marketing (MAR).

Statoil is market leader for LPG in Scandinavia. The commitment in Poland forms part of MAR's plans to expand sales of this commodity in Europe and Asia.

A Polish sales organisation is now being built up by the group.

"We'll first be seeing how we can enhance value creation through a dedicated unit within our existing organisation in Poland, and how we can use our strong network of service stations there," explains Mr Kjølberg.

"We'll be considering whether collaboration with or acquisition of other companies in Poland could be relevant strategies when the business plan comes to be drawn up."

Poland's overall LPG market has expanded from 150,000 annual tonnes in 1990 to 850,000 tonnes last year, with growth strongest in the household and motor fuel sectors.

One reason for this expansion is that the Poles are replacing coke for heating and converting to less polluting fuels, Mr Kjølberg believes.

Poland is the third largest market in Europe for LPG-fuelled cars. Growth in the motor fuel sector has been boosted by lower duties on LPG by comparison with petrol and diesel oil.