01.Feb .2022 20:00

Poland to supply LNG from US to Ukraine

Poland to supply LNG from US to Ukraine
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Poland’s PGNiG (Polskie Gornictwo Naftowe i Gazownictwo) has entered into a contract with the American-Ukrainian company Energy Resources of Ukraine (ERU) on a single delivery to Ukraine of liquified natural gas supplied to Poland from the US after re-gasification in the republic, the oil and gas company said in a statement on Tuesday.

"The ship with the American LNG will arrive at the President Lech Kaczynski LNG Terminal in Swinoujscie at the end of February this year. After re-gasification, the fuel will be fed into the Polish transmission system. ERU Europe will be receiving the purchased fuel at the interconnection between Poland and Ukraine until the end of March 2022," the statement said, TASS reports. 

This is the second gas delivery to Ukraine made by PGNiG and ERU based on the purchase of American LNG, the company noted. The first one took place in November 2019.

"Thanks to the investments in gas infrastructure carried out in Poland in recent years, we can strengthen the energy security of the region by ensuring our customers access to diversified sources of natural gas and the ability to choose the best offer on the market," President of the Management Board of PGNiG Pawel Majewski was quoted as saying.

"Our supply of competitive natural gas from the US will support Ukrainian customers' resilience and safety of supply in the remaining months of this winter," added ERU Managing Partner Yaroslav Mudriy. "The new LNG deal adds to PGNiG and ERU's efforts in supporting the long-term energy independence of Ukraine, by developing new gas production through joint gas exploration and production," he noted.

PGNiG and ERU have been cooperating for several years. In August 2016, ERU received the first gas shipment sold by PGNiG to the Ukrainian market. In the past, the two companies have also jointly supplied natural gas to the operator of the Ukrainian gas transmission network and gas storage facilities. In August 2021, PGNiG and ERU commenced exploration and production operations in the western part of Ukraine’s Lviv Region.