Polish state-controlled oil and gas company PGNiG will, for the first time, supply natural gas to the Gas Transmission System Operator (TSO) of Ukraine, under a contract with Energy Resources of Ukraine (ERU), a group of companies with foreign investments, which specialises in the implementation of projects in the Ukrainian energy sector.
To date, PGNiG has already exported more than 3 billion cubic metres of natural gas to Ukraine. The new contract requires that gas supplies be provided in the period from 1 October 2020 to 1. May 2021. The Gas TSO of Ukraine will use the gas for technical purposes.
“We are glad to continue our cooperation with PGNIG and to jointly participate in the gas supply tenders for the newly formed independent Ukrainian gas transmission system operator,” said Yaroslav Mudriy, Managing partner of ERU. “ERU has been able to offer the most competitive prices thanks to the support from PGNIG and we have increased our Political Risk Insurance from the United States DFC [International Development Finance Corporation] to 100 million US dollars, allowing our company to finance the supply of significant volumes and accept related credit risk exposure. Thanks to the joint efforts from all parties, we believe such tenders are excellent examples of business transparency and the growing trust in the Ukrainian gas market and its new TSO.”
Jerzy Kwieciński, President of the PGNiG Management Board, has stressed that gas supplies by PGNiG to the Gas TSO of Ukraine are another example of the Company’s commitment to building a regional gas market in this part of Europe.
“Our strategy to optimise our natural gas portfolio using foreign infrastructure is delivering the expected results,” Mr Kwieciński said. “With gas stocks held by PGNiG in underground storage facilities in Ukraine, we were able to offer our trading partner competitive terms.”
In the first half of 2020 alone, PGNiG’s exports to Ukraine totalled 0.9 bcm, up 190 per cent year-on-year.
If you liked this content, follow us also on social media.