Natural gas and the green transition

Natural gas and the green transition

For decades, natural gas has remained one of the most important fuels in the global economy - including in Poland. Its significance stems both from its energy properties and its wide range of applications in industry and households. In recent years, natural gas has increasingly been referred to as a transition fuel - one that plays a crucial role in the energy transformation and the gradual shift away from coal toward renewable energy sources.

What is natural gas?

Natural gas is a fossil fuel whose main component is methane (CH4), which typically accounts for 70–98% of its volume. It also contains ethane, propane, butane, and small amounts of nitrogen, carbon dioxide, and hydrogen sulfide. Thanks to its high calorific value, clean combustion, and ease of transmission through gas pipelines, natural gas is one of the most widely used fuels in the world.

Unlike coal or petroleum, natural gas emits significantly less carbon dioxide and air pollutants such as particulate matter or sulfur oxides when burned. This makes it a more environmentally friendly option, although it is still classified as a non-renewable energy source.

Where does natural gas come from and how is it extracted?

Natural gas was formed over millions of years through the decomposition of plant and animal remains in anaerobic conditions, under high pressure and temperature within the Earth’s crust. Gas deposits can occur independently but are often found alongside crude oil or coal.

The extraction process involves drilling wells at identified deposits. Once opened, the gas flows out under pressure and is directed to purification facilities, where contaminants such as water, solid particles, and hydrogen sulfide are removed. This produces clean fuel suitable for transmission and use in energy generation or industry.

In Poland, natural gas extraction is concentrated mainly in the Subcarpathia and Lublin regions. However, domestic reserves are limited, which means that a large share of the gas consumed in the country is imported - from Norway and via the LNG terminal in Świnoujście, among others.

Natural gas in Polish industry

In the Polish economy, natural gas is used across many sectors - both as an energy source and as a raw material in production processes. It plays a strategic role in maintaining industrial and economic stability.

  • Energy and heating

One of the main areas of application for natural gas is the energy and heating sector. High-efficiency gas-fired combined heat and power (CHP) plants allow for the simultaneous production of electricity and heat, with lower CO2 emissions than coal-based systems. In Poland, an increasing number of industrial facilities and local governments are investing in such solutions.

  • The chemical industry

Natural gas is the primary raw material in ammonia production, and consequently, in nitrogen fertilizers. It also serves as a base for methanol, hydrogen, and many other compounds used in organic synthesis. Without natural gas, the functioning of Poland’s entire chemical industry would be difficult to imagine.

  • Industry, manufacturing, and transport

Because of its high combustion temperature, natural gas is used in metallurgical and foundry furnaces, as well as in the ceramics and glass industries. It provides a stable source of thermal energy and ensures uniform production conditions, which are critical for product quality. Natural gas also fuels dryers, bakery ovens, and production lines in the food industry. In the paper industry, it generates process steam essential for drying. Moreover, compressed natural gas (CNG) and liquefied natural gas (LNG) are gaining popularity as cleaner alternatives to traditional fuels in heavy transport and maritime shipping, helping to reduce emissions.

Why is natural gas called a transition fuel?

The term transition fuel refers to the role natural gas plays in the energy transformation process. Compared to coal or oil, its combustion results in lower carbon dioxide emissions and reduced air pollution. At the same time, natural gas remains a fossil fuel and does not align with the long-term vision of climate neutrality.

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In the coming years, natural gas is expected to be gradually replaced by renewable energy sources such as photovoltaics, wind power, or biogas. For this reason, it is considered a bridge fuel - necessary during the transformation period but not a long-term solution. In the European Union, the debate about the role of natural gas has been ongoing for years. On the one hand, it is essential for stabilizing the energy system and ensuring security of supply. On the other, investments in gas infrastructure carry the risk of a so-called lock-in effect - prolonging dependence on fossil fuels beyond what climate goals allow.
Ph. D. Dominik Brach Vice President of the Management Board

Natural gas and the energy transition in poland

Poland, long reliant on coal, views natural gas as a key element in its effort to phase out the most carbon-intensive energy source. The construction of new gas power units, expansion of gas networks, and LNG imports enable a gradual replacement of coal in the power and heating sectors. At the same time, renewable energy sources are gaining importance - though they require stable backup capacity. Natural gas thus serves as a system stabilizer - it can be quickly deployed when output from solar or wind installations drops.

Availability of natural gas

The price and availability of natural gas depend on global market trends, which are influenced by supply and demand, seasonal fluctuations (higher demand in winter), transport costs, and the geopolitical situation in gas-exporting countries. Exchange rates, EU climate policy, and the growth of alternative energy sources also play a role.

For Poland, import levels remain a key factor - since domestic production covers only part of the demand, most gas must be sourced abroad. This dependence poses risks: during political crises or supply disruptions, Poland could experience price spikes or fuel shortages. Therefore, diversification of supply routes, the development of LNG terminals, and interconnections with the European gas network are essential to maintaining national energy security.

Summary

Natural gas has a wide range of applications in Polish industry - from energy and heating to chemicals, metallurgy, ceramics, glassmaking, food processing, and transport. With its high calorific value, clean combustion, and developed transmission infrastructure, it plays a strategic role in the economy. As a transition fuel, it enables a more flexible shift from coal to green energy.

However, natural gas remains a fossil fuel and, in the long term, does not meet the criteria for climate neutrality. It is therefore seen as a bridge fuel - necessary on the path toward zero emissions but not a permanent solution. In the coming years, natural gas will continue to play an important part in Poland’s energy mix, though its role will gradually diminish in favor of renewable energy sources and emerging technologies.

Knowledge base

Impact of environmental regulations on industrial companies

The green transformation, which forms the foundation of the EU’s climate strategies, is not just a buzzword – it is a broad set of regulations and initiatives that will strongly influence both Polish and foreign companies in the coming years. Regulations such as the European Green Deal, Fit for 55, and the EU ETS system require businesses to implement solutions that reduce CO₂ emissions, improve energy efficiency, and increase the share of renewable energy sources.

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What is Fit for 55 and how does it affect Polish industry?

Fit for 55 is a package of European Union regulations aimed at achieving a reduction in greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels. It is a key component of the European Green Deal, which sets the goal of achieving climate neutrality by 2050. Fit for 55 includes changes to regulations on emissions trading, energy efficiency, renewable energy sources, and transport. It also introduces new support mechanisms and financial assistance programs across the European Union.

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The future of fossil fuels in Poland and Europe

Fossil fuels have played a key role in the development of the European and global economy, but their era is likely coming to an end. Rising emission costs, aging infrastructure, and the global decarbonization trend indicate that further long-term investment in high-emission energy sources is not a profitable path. Allocating resources to the green transition is not only a way to avoid the risks associated with fossil fuels, but also an opportunity to build a modern, sustainable economy based on innovation and clean energy. In Poland in particular, balancing the transition will be crucial to reconcile climate goals with the needs of industry and society.

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