Offshore Oil & Gas Decommissioning - Poland

In general, the President of the Energy Regulatory Office supervises the energy market. The President of the Energy Regulatory Office should intervene if renting or leasing gas distribution network for the purpose of hydrogen distribution would lead to the cross-subsidisation or development plans that lack appropriate elements concerning conversion of gas networks into hydrogen networks.

When it comes to the process of transforming depleted deposits into space for storing substances, the competent authority is the minister responsible for the environment, who approves the change of documentation and grants a new license.

In principle, Polish law does not contain an obligation to decommission oil and gas infrastructure. However, there are legal incentives to convert the infrastructure of fossil fuels to infrastructure of renewable fuels.

The regulations that indirectly concern this issue are those allowing the conversion of natural gas networks into hydrogen networks. The legal acts that regulate this are:

• Act of November 21, 2024, amending the Energy Law Act and certain other acts (the Act of November 21, 2024), and
• Act of April 10, 1997, Energy Law (the Energy Law).

In addition, there are regulations that facilitate the conversion of depleted oil and gas fields into storage facilities for substances, including renewable fuels. The following acts are relevant in that regard:

• Act of June 16, 2023, amending the Geological and Mining Law Act and certain other acts (the Act of June 16, 2023), and
• Act of June 9, 2011, Geological and Mining Law (the Mining Law).

• The Act of November 21, 2024 and the Energy Law

The Act of November 21, 2024 added to the Energy Law two types of regulations which concern natural gas infrastructure conversion:

• Renting or leasing gas distribution network for the purpose of hydrogen distribution

The Act of November 21, 2024 has formally separated the hydrogen system from the other energy systems, including the natural gas system. The hydrogen system operators, including the hydrogen distribution system operator, are responsible for the operation of the hydrogen system. For the physical development of the hydrogen system, it is legally permissible to rent or lease certain gas distribution networks for the distribution of hydrogen.

Owners of gas distribution networks, gas distribution system operators or hydrogen distribution system operators, with a view to the rational use of their fixed assets, may make them available to hydrogen distribution system operators within the same group of vertically integrated companies, on the basis of a lease or rental agreement, if technical conditions and safety requirements permit. However, this decision cannot lead to cross-subsidisation between those operators.

This arrangement is not an obligation, but an option that the relevant entities may choose to adopt.

• Conversion of gas networks as a part of development plans for gas systems

A separate solution is to expand the responsibilities of the gas transmission system operator (TSO) and gas distribution system operators (DSOs) in the sphere of preparing developments plans. The Energy Law mandates TSO and DSOs to prepare a (territorial) development plan to meet current and future demand for e.g. natural gas for a period of not less than 3 years.

While preparing its development plan, TSO shall cooperate with hydrogen transmission system operators to ensure the implementation of energy-efficient solutions which enable: cost-effective decarbonisation of natural gas sector, flexible and effective utilisation of the assets owned by these operators, taking into account all energy carriers, and including the conversion of gas networks into hydrogen networks. A similar obligation, but with regard to hydrogen distribution system operators, is imposed on DSOs.

Development plans are also to be drawn up by hydrogen system operators. The plan prepared by the hydrogen transmission system operator shall indicate the network that is, or can be, converted for the purpose of hydrogen transmission, in particular for the purpose of supplying hydrogen to end users in sectors of the economy where the potential for reducing greenhouse gas emissions is limited, taking into account energy and economic efficiency. In the case of a plan prepared by a hydrogen distribution system operator, the plan should include information on the potential for converting gas networks into hydrogen distribution networks and the extent to which this conversion is required to meet the projected demand for hydrogen.

The above solution is mandatory for the designated operators, but its implementation depends on the actual possibility of converting gas networks into hydrogen networks.

The above legal solutions are relatively new, as they came into force on January 20, 2025.

• The Act of June 16, 2023 and the Mining Law

The option to transform a former oil and gas field into a space for storing substances, added to the Mining Law via the Act of June 16, 2023, is also not mandatory. However, the possibility of exercising this right depends on the foresight of the entity exploiting the fields.

An entity that expects to terminate the exploitation of a mineral field (or part thereof) that it has been conducting under a license or other relevant decision may amend the previously submitted documentation to provide for the field (or part thereof) to be used for underground tank-free storage of substances. If the entity exploiting the field makes this change, then after production from the field (or part of it) has ended and the resources have been accounted for, it has the exclusive right to apply for a license for underground tank-free storage of substances in this space. This right expires 5 years after the date of approval of the amendment applied for.

The above solution is not a classic solution involving the decommissioning of gas or oil infrastructure. However, it may involve converting this infrastructure in such a way that it can be used to utilise renewable fuels. The term “substance” in the Mining Law is very broad and includes renewable fuels such as hydrogen. It explicitly excludes only waste and carbon dioxide.

This solution is also relatively new, as it came into force on October 28, 2023.

The above regulations do not impose obligations; therefore, no penalties are provided for non-compliance with decommissioning laws and/or regulations.

No.

The above regulations do not impose obligations; therefore, there are no regulations concerning impact on co-venturers and/or other stakeholders.

In other cases, liability may be proportional to each co-venturer's participation in the consortium, as stipulated in the Joint Operating Agreement (JOA) and applicable legislation.

No.

All above solutions have only recently been adopted, and so there is not sufficient evidence on which to assess any typical approach.

In relation to renting or leasing gas distribution networks for the purpose of hydrogen distribution the standard financial security mechanisms used in energy infrastructure rental, or lease transactions can be applied.

All above solutions have only recently been adopted, and so there is not sufficient evidence by way of examples to assess whether there is any typical approach.

The conversion of gas networks into hydrogen networks is one of the hot topics in Poland’s energy transition.

The Polish Hydrogen Strategy until 2030 indicates that dedicated pipelines for the transmission and distribution of hydrogen should be built by 2030. As the expansion of new infrastructure is time-consuming, converting gas networks into hydrogen networks is a much better solution. At the same time, it is a rather complicated process, as it requires, first of all, the appointment of hydrogen transmission system operators and/or hydrogen distribution system operators.

In the case of solutions provided for in the Energy Law, this interaction is obvious. Gas networks can be rented or leased or otherwise converted exclusively for the purpose of hydrogen transportation. This does not have to be renewable hydrogen, but it can help develop units that also produce renewable and low-carbon hydrogen.

As for solutions under the Mining Law, the transformation of depleted fields for the purpose of substance storage can be linked to the development of low-carbon energy projects. A good example is the storage of hydrogen. Hydrogen storage in depleted fields is viewed as one of the new technologies which could redefine the management of the rock mass according to the National Raw Materials Policy.