21^st Fuel Branch Meeting

The 21st edition of the Fuel Industry Meeting - The Polish LPG Market - was held in Sopot, a symbolic location chosen in light of the growing significance of seaborne LPG imports to Poland. The event attracted substantial interest from both Polish and international companies, with nearly 250 participants in attendance.

The conference was formally opened by Robert Bukowski, President of Information Market S.A., who also acknowledged the event's sponsors, including Orlen Paliwa (Strategic Sponsor) and Danske Gas.

Panel I: The LPG Market in Poland and its International Environment

The first panel session began with a presentation by Dr. Szymon Araszkiewicz and Dr. Jakub Bogucki, who provided a crucial status update on LPG supply and pricing in Poland following the imposition of sanctions on Russian gas imports. Their analysis highlighted current pricing trends and confirmed the market's robust preparation for a geographical reorientation of its supply channels.

Robert Stępień (Supply Chain Manager, Primagaz Central Europe Ges.m.b.H.) discussed the evolution of global LPG flows, noting a significant shift in 2025 supply dynamics. While US exports have historically met the rising demand from East Asian countries, the second quarter of 2025 saw increased exports directed towards Northwest Europe and the Mediterranean. Simultaneously, China, burdened by high tariffs on US LPG, has pivoted to Middle Eastern suppliers. Mr. Stępień emphasized Turkey’s growing role as a strategic transit hub between European and Asian markets. He concluded that the European LPG market outlook is positive, driven by rising demand in the petrochemical sector and a systematic decline in local refinery production. Despite potential seasonal price increases for propane, the fuel remains highly price-competitive against both crude oil and natural gas.

Ivan Buian (LPG Purchasing and European Logistics Director, GT Poland Sp. z o.o.) outlined the critical role of the GT Group in the Ukrainian petroleum product market. He detailed the changes in the supply structure following the Russian invasion, noting the shift away from pre-war suppliers (Russia, Belarus, Kazakhstan). Mr. Buian highlighted the market's successful adaptation, with the GT Group accounting for over 60% of national LPG supplies during the initial months of the war. A key development in 2025 is the permanent transformation of the import model: sea and river deliveries now account for 51% of total supply, displacing traditional rail and road transport. This shift underscores the increasing strategic importance of the Turkish and Romanian routes in ensuring stable supply for Ukraine.

Panel II: Sectoral Analysis of the LPG Market in Poland

The second panel opened with a presentation by Wojciech Radzioch (Commercial Director, ELKOM-GAZ Z. Sobieralski Sp.k.) on the role of butane in the European market, covering its significance in energy and its numerous non-energy applications (e.g., in the chemical, medical, and food industries). He addressed the critical issue of the EU's 19th sanctions package, which may exclude the purchase of Russian butane fractions. He warned that the potential lack of access to Russian isobutane could pose a significant challenge to domestic industries reliant on it and suggested mitigation strategies proposed by the Polish Liquid Gas Chamber.

A subsequent panel discussion focused on the current state and future of the automotive LPG (Autogas) market. Experts, including representatives from AC S.A., the Autogas Coalition, and ERES Partner, unanimously stressed that Autogas remains a viable and readily available alternative fuel for both private drivers and commercial fleets. They noted that market concerns from late 2024 regarding the anticipated EU ban on Russian LPG imports did not lead to the feared shortages or sharp price spikes, confirming the market’s stability. The speakers argued that converting vehicles to LPG remains a profitable investment, with a return on investment that is often quicker than for electric (EV) or hybrid powertrains, especially for vehicles with high mileage. Other key discussion points included the need for active advocacy and education of legislative decision-makers regarding Autogas's environmental and economic benefits, as well as regulatory barriers currently preventing the widespread use of LPG in agricultural machinery.

Panel III: Legal and Tax Issues

Wojciech Kotala and Adrian Biały (Cabaj Kotala Tax Advisory) addressed key regulatory changes impacting the LPG sector, focusing on three areas: the EU ETS2 system, amendments to the SENT system (monitoring of goods transport), and Energy Law issues. Concerning ETS2, they clarified that fuel coverage will be determined by its end-use (e.g., LPG for agriculture is exempt, but for heating is covered).

They discussed the operational challenges of separating ETS2-covered and non-covered sales and the potential risks of the ‘cascade’ declaration system. Regarding SENT, they presented planned amendments, including extending the system to cover transport for services and inter-warehouse movements, alongside modifications to financial penalties.

Magdalena Chmielewska-Cholewa (KDCP Rutkowski & Wspólnicy) presented critical challenges related to compliance with sanction regulations for LPG imports, particularly n-butane, which was included in the 19th EU sanctions package. As an alternative to a full import ban, she proposed utilizing the end-use procedure (pursuant to Art. 254(1) of the Union Customs Code). This procedure allows goods to be admitted to free circulation with customs relief based on their specific intended purpose, but requires obtaining prior authorization, maintaining detailed records, and submitting a security deposit for any potential customs debt.

The conference, which covered a diverse range of critical industry topics, concluded around 4:30 PM, with networking and discussions continuing long after the official closing ceremony. We encourage participation in the next edition, which will be held in Poznań next year.

Organizator zapewnia tłumaczenie symultaniczne PL ⇆ EN podczas części konferencyjnej.

The Host provides simultaneous PL ⇆ EN translation during the conference.