Portal partners
Portal partners
PGNiG sold LNG cargo from the US to a Ukrainian company
Polish Oil and Gas Mining purchased a cargo of liquefied natural gas (LNG) from the USA and then, after regasification, resold natural gas to Energy Resources of Ukraine (ERU). Thanks to the consistent expansion of the LNG portfolio, PGNiG is able to offer natural gas to subsequent customers.
A meth ship with purchased cargo will arrive to the terminal LNG named President Lech Kaczyński in Świnoujście in early November 2019.
Condensed natural gas after regasification will be injected into the Polish transmission system in Świnoujście, and then transferred to Ukraine through the border pipeline connection in Hermanowice to ERU.
Delivery to Ukrainian partner will be completed by the end of 2019.
"PGNiG has built wide competence in the LNG market over the last three years. We can purchase LNG on competitive terms from reliable suppliers from around the world. We also have all the capacity at the terminal in Świnoujście (we expect 39 deliveries next year) and the available capacity in the gas pipeline system in Poland and at its borders," said PGNiG CEO Piotr Wozniak.
"The only limitation in developing exports to Ukraine on an even wider scale is the gas pipeline capacity in Poland in the direction of Silesia – Podkarpata. We expect to increase the capacity of these pipelines by 2021 at the latest," he added.
The import of liquefied natural gas to Poland is growing rapidly. While in 2016, LNG accounted for around 8.5% of imports, in 2018 it was already over 20 percent.
Since the start of the operation of the terminal in Świnoujście PGNiG, nearly 70 LNG cargoes with a total volume of approx. 7.5 billion cubic metres have already been received after regasification.
More and more loads come to Poland from the USA. While PGNiG adopted one US LNG spot delivery in 2018, by the end of August 2019 four spot deliveries had already been received, and one in a medium-term contract and one in a long-term contract.
ERU Director Trading LLC Yaroslav Mudryy reported that ERU contracted gas volumes from Poland to enter the system and store it to later deliver to consumers during the winter season.
"In this way, we contribute to the country's energy security during the uncertain and particularly risky winter of 2019 and 2020," said Yaroslav Mudryy.
‘In this case, given the well-developed gas transport system, Ukraine does not have to be the last destination for American LNG. This gas can be successfully delivered to countries such as Hungary, Romania and even Moldova," he added.
PGNiG and ERU have been cooperating for several years. In August 2016, PGNiG exported gas to Ukraine, where the Ukrainian trading partner was the recipient. In the past, both companies supplied natural gas together for the Ukrainian transmission network operator and Ukrtransgas warehouses.
Energy Resources of Ukraine (ERU) is a group of companies with foreign investments, specializing in the development of energy projects in Ukraine. In July 2019, ERU Trading became the first company to import electricity from Europe to Ukraine.
Signature of the ER
