Polish state-owned company purchases LNG for Ukraine

Andrzej Hrechorowicz/PAP

Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) has purchased a cargo of US liquefied natural gas (LNG) that will be sent to Ukraine by the end of March 2022.

PGNiG reported on Tuesday that an LNG carrier from the US is expected to arrive in Poland by end of February. After its arrival, the LNG will be re-gasified and sent to Ukraine via the Polish gas transmission system.

"Thanks to investments in gas infrastructure… we can strengthen the energy security of the region by ensuring access to various sources of natural gas for our customers," Pawel Majewski, PGNiG's CEO, said in a press release.

PGNiG's customer in Ukraine is an American-Ukrainian company, ERU Europe, which is going to collect the gas at the interconnection between the Polish and Ukrainian gas systems by the end of March 2022.

"The new LNG contract is yet another effort of PGNiG and ERU to support the energy independence of Ukraine, on top of joint upstream activities," Dale Perry, ERU managing partner, said in a press release.

This will be the second delivery of American LNG to Ukraine via the LNG terminal in Swinoujscie in northern Poland, and the Polish-Ukrainian gas interconnector. The first took place in November 2019. Otherwise, Ukraine almost entirely depends on gas deliveries from Russia.