Ukraine and Poland officially sign a agreement to trade LNG from the US

Posted on by Neeraj Jivnani

The Energy Resources of Ukraine Group (ERU) has signed an agreement with the Polish PGNiG on the acquisition and import of American liquefied natural gas (LNG) to Ukraine.

The trader’s press release noted that as part of the agreement, liquefied gas will arrive at the Polish LNG terminal named after President Lech Kaczynski in иноwinoujцеcie already in early November.

LNG will enter the Polish transmission system after regasification. From there, he will get to Ukraine through gas communication in Germanovice and will be transferred to the company ERU. Deliveries for ERU will go until the end of 2019.

According to the head of PGNiG Petr Wozniak, today the only limitation for increasing exports to Ukraine is the capacity of Polish pipelines in the direction of Silesia-Subcarpathia. The Polish side expects that the capacity of these pipelines will be expanded to a maximum of 2021.

According to a press release, imports of liquefied natural gas to Poland are growing dynamically. If in 2016 the share of LNG was about 8.5% in the whole structure of imports, then in 2018 it exceeded 20%. Since the launch of the terminal in иноwinoujцеcie, PGNiG has already received 70 batches of liquefied natural gas with a total volume of 7.5 billion cubic meters. m after regasification.

The director of ERU TRADING LLC, Yaroslav the Wise, said that this volume was contracted “with the aim of pumping it and storing it in a storage facility for further delivery to consumers in the winter.” According to the Wise, in this case, given the developed structure of the Ukrainian gas transportation system, Ukraine “may not be the last destination of American LNG.” According to him, in the future LNG may be delivered to Hungary, Romania, and Moldova.

“Energy resources of Ukraine” – a group of companies with foreign investment, specializing in the implementation of projects in the Ukrainian energy sector. The ERU group belongs to Yaroslav the Wise and Dale Peri.

PGNiG has been selling natural gas to Ukrainian consumers since August 2016.

Earlier, the newspaper Kommersant reported that Poland intends to increase purchases of US LNG. According to the national state-owned company PGNiG, it costs 20-30% less than Gazprom’s pipeline gas. The importer plans to increase volumes after 2022. Then the long-term contract with Gazprom will expire. Nevertheless, in the first half of the year, Poland already reduced its purchases from Gazprom by 28% to 4.3 billion cubic meters.

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