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PGNiG and ERU contract US LNG for Ukraine

Published by , Senior Editor
Hydrocarbon Engineering,

PGNiG has purchased US LNG cargo to be supplied to the Ukrainian border for ERU Europe.

This will be the second time that US gas is delivered to Ukraine thanks to the cooperation of both companies.

The LNG carrier will arrive at the President Lech Kaczynski LNG Terminal in Swinoujscie at the end of February. After regasification, 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.

“This is yet another delivery of American LNG to Ukraine made by PGNiG in cooperation with ERU, which is our strategic trading partner on the Ukrainian market. Good relations built over the years are particularly important now, at a time of great turbulence on the gas market in Europe”, said Pawel Majewski, President of the Management Board of PGNiG SA. “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.”

“It is an honour for ERU to have concluded a new transaction with its long-term partner PGNiG to import US LNG to Ukraine. For Ukraine, as for Europe, diversification of supply and especially LNG is a key element of energy independence. For me, especially now, this is not only a responsibility for the state but also a responsibility for private companies,” said Dale Perry, ERU Managing Partner.

“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 Yaroslav Mudriy, his fellow Managing Partner. “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.”

This is the second gas delivery to Ukraine made by PGNiG and ERU based on the purchase of US LNG. The first one took place over two years ago. The tanker with the purchased cargo arrived at the Swinoujscie terminal in November 2019. ERU received the fuel through the interconnection in Hermanowice.

PGNiG and ERU have been working together for several years. In August 2016 ERU took delivery of 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 October 2021 PGNiG Group, in cooperation with ERU, made the first ever supply of non-Russian gas to Moldova. The transaction was concluded on an urgent basis due to the reduction of gas supplies to Moldova by Gazprom.

In August 2021, PGNiG and ERU commenced E&P operations in Ukraine thorough their joint venture Karpatgazvydobuvannya, which holds a licence to explore and produce hydrocarbons in western part of the Lviv Oblast.

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