Polish charterer making waves in seaborne energy transport

PKN Orlen’s growing role in chartering and energy transportation signals a shift in energy sourcing and supply chain strategy

Tanker chartering is a business defined by continuity. Each year, the industry’s ranking of the largest spot charterers remains broadly unchanged, with the same major players — trading houses, oil majors, and national oil companies — dominating the landscape. The latest data from Poten & Partners’ 2024 charterer rankings largely confirms this trend. Unipec, the trading arm of China’s state-owned Sinopec, retained its position at the top, while other established names such as Shell, ExxonMobil, and BP continued to command substantial market share. Yet, beneath this veneer of stability, incremental shifts can indicate broader transformations in global energy markets. One such shift is the emergence of PKN Orlen, Poland’s state-controlled energy conglomerate, as a growing force in tanker chartering.

For the first time, PKN Orlen entered Poten’s top 20 dirty spot charterers in 2024, ranking at number 16, with 150 dirty spot fixtures. Compared to Unipec’s 805 similar fixtures it seems rather small, but this development marks a fundamental change in the company’s approach to crude oil sourcing, prompted by geopolitical pressures and strategic realignment. Historically reliant on pipeline crude imports from Russia, PKN Orlen has aggressively diversified its procurement strategy in response to shifting energy dynamics. The company has increasingly turned to seaborne crude oil imports from the North Sea and the Middle East, leading to a surge in its tanker chartering activity. In 2024 alone, PKN Orlen fixed an estimated 16M tonnes of crude oil cargoes on the spot market, securing its position as a key participant in global shipping markets.

“The shift away from pipeline crude oil has coincided with broader efforts by PKN Orlen to reinforce its energy supply chain and expand its presence in the maritime sector”

The shift away from pipeline crude oil has coincided with broader efforts by PKN Orlen to reinforce its energy supply chain and expand its presence in the maritime sector. One of the most notable elements of this expansion has been its foray into LNG transportation. Recognising the growing demand for natural gas and the European Union’s push towards decarbonisation, the company has ramped up its LNG import capacity. It has signed long-term contracts, including a 20-year agreement with Sempra Infrastructure for annual LNG deliveries from the Port Arthur export project in Texas, set to begin in 2027.

To support its LNG import strategy, PKN Orlen has also been building its own LNG fleet. The company has commissioned two purpose-built LNG carriers, with plans to expand this fleet to eight vessels by 2025. This move grants PKN Orlen greater control over its logistics while reducing reliance on third-party carriers. The addition of dedicated LNG carriers positions the company to compete more effectively in the global LNG market while securing long-term energy supplies for Poland.

In parallel with its expansion in shipping, PKN Orlen has pursued substantial investment in its refining and petrochemical divisions. In 2024, it completed a US$245M overhaul of its Olefin II plant, doubling its ethylene and propylene output. This investment underscores its commitment to increasing the efficiency and scale of its petrochemical operations. However, its more ambitious Olefins III project has faced headwinds. Initially expected to cost PLN8.3Bn (US$2.0Bn), the project’s estimated costs have ballooned to between PLN45Bn and PLN51Bn (US$10.8-12.3Bn), casting doubt over its feasibility. The company has since launched a review of strategic options, including project optimisation or outright suspension, to mitigate financial risk, according to Reuters.

Meanwhile, PKN Orlen has also sought to strengthen its refining footprint outside Poland. Its subsidiary, Orlen Lietuva, has embarked on a EUR641M (US$700M) modernisation of the Mažeikiai refinery in Lithuania, the largest such investment in the country’s history. The upgrade is expected to improve operational efficiency and increase profitability, further solidifying PKN Orlen’s role as a dominant energy player in Central and Eastern Europe. The refinery, which processes 8M tonnes of crude annually, remains a critical asset for Orlen’s regional supply network.

Despite its aggressive expansion, PKN Orlen has encountered setbacks, particularly within its trading division. Its Swiss subsidiary, Orlen Trading Switzerland, has been embroiled in a financial scandal involving undelivered oil cargoes and alleged mismanagement. The company reportedly paid nearly US$400M for crude shipments that never materialised, leading to legal action and the detention of its former ceo in the United Arab Emirates. Polish authorities are now seeking his extradition, and the episode has prompted a broader review of Orlen’s trading operations to prevent further financial missteps, according to Reuters.

Amidst these challenges, the company’s leadership has also faced scrutiny. In late 2024, shareholders approved legal action against 13 former executives, including former ceo Daniel Obajtek, as part of efforts to recover financial losses tied to past investment decisions. These legal disputes add a layer of uncertainty to Orlen’s strategic outlook, but they also signal an effort to improve governance and accountability, also according to Reuters.

Looking ahead, PKN Orlen’s deepening involvement in tanker chartering, LNG transportation, and refining suggests it is positioning itself as a more vertically integrated energy major. By expanding its fleet and diversifying its energy imports, it is moving beyond its traditional reliance on Russian pipelines and transitioning into a more agile and globally engaged enterprise. While financial and managerial challenges persist, its growing role in maritime energy logistics is reshaping its business model.

In a tanker market where continuity is the norm, PKN Orlen’s rise as a chartering force stands out. It reflects the broader geopolitical and economic shifts influencing global oil flows, as well as the company’s ambition to cement itself as a key player in the evolving energy landscape. Whether its expansion strategy delivers long-term stability or exposes it to further risks remains to be seen, but for now, PKN Orlen’s ascent is a development that the industry cannot ignore.