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PGNiG buys US LNG cargo and sells gas to Ukraine

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LNG Industry,


Polish Oil and Gas Co. (PGNiG) has announced that it has purchased an LNG cargo from the US, and then – following regasification – sold the gas to Energy Resources of Ukraine (ERU).

According to the statement, the contracted LNG tanker will arrive at the President Lech Kaczynski LNG Terminal in Swinoujscie, Poland, at the beginning of November this year. LNG will be injected into the Polish transmission system after it is regasified. From here, it will reach Ukraine and ERU via the gas connection in Hermanowice. Supplies to the Ukrainian partner will be carried out until the end of this year.

Piotr Wozniak, President of the PGNiG Management Board, said: “PGNiG has built up extensive competences on the LNG market over the past three years. We have the opportunity to purchase LNG on competitive terms from reliable suppliers from around the world. We also have reserved full capacity at the terminal in Swinoujscie – we expect 39 deliveries next year – and have the available capacity in the gas pipeline system in Poland and on its borders. This makes PGNiG a natural partner for cooperation in building a modern and secure gas market in our part of Europe. Several years of cooperation with our partners from the Ukrainian ERU is the best proof of this.

“Currently, the only limitation in the development of exports to Ukraine on an even larger scale is the capacity of gas pipelines in Poland in the direction of Silesia–Podkarpacie. We expect the capacity of these gas pipelines to be expanded by 2021 at the latest.”

PGNiG claims gas imports to Poland are increasing dynamically. While in 2016 LNG only accounted for approximately 8.5% in the entire import structure, last year it was over 20%. Since the terminal in Swinoujscie began operating, PGNiG has already received nearly 70 LNG cargoes, totalling approximately 7.5 billion m3 after regasification. The company claims more and more supplies are travelling to Poland from the US. While last year PGNiG welcomed just one spot delivery of US LNG, by the end of August this year, it has already received four spot deliveries, as well as one under a medium-term contract and one under a long-term contract.

Dale Perry, President of ERU Corp., said: “We continue to maintain our reputation as pioneers in the implementation of the most ambitious tasks in the regional energy sector. Thanks to the partnership with our Polish companion, we are making tangible breakthroughs in building a transatlantic gas supply corridor from the US to Ukraine.”

Yaroslav Mudryy, Director of the ERU TRADING LLC, added: “We contracted this volume for the purpose of injecting and storing it for further delivery to consumers in the winter season – this way we contribute to the country’s energy safety during uncertain and especially risky winter period 2019-2020.

“In this case, taking to the account well developed gas transportation system, Ukraine may not be the last destination for American LNG, it can be successfully delivered to countries like Hungary, Romania and even Moldova.”

According to the statement, PGNiG has been cooperating with ERU for a number of years. In August 2016, PGNiG started exporting gas to Ukraine, where the recipient was the Ukrainian trading partner. In the past, both companies also jointly supplied natural gas for the needs of Ukrtransgaz – Ukrainian operator of transmission network and storage system.

Read the article online at: https://www.lngindustry.com/regasification/29082019/pgnig-buys-us-lng-cargo-and-sells-gas-to-ukraine/

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US LNG news LNG import news Natural gas news