Polish Briefing 27 November, 2018 9:00 am   
COMMENTS: Mateusz Gibała

Polish Briefing: Naftogaz talks about gas supplies from Poland and the USA

What goes on in Poland on the 27th of November.

LNG from the USA in Ukraine

Ukrainians talk with Poles and Americans about gas supplies. Perhaps some of them will be received via the LNG terminal in Świnoujście.

– Gas production in Ukraine does not cover consumed volumes, so it has to import gas from abroad. We have the second largest gas resource in Europe. We also want to increase our own extraction. Naftogaz is also negotiating new sources of gas supplies from Poland, Romania and the United States – the Naftogaz press office informed in a conversation.

However, the Concern did not specify at what stage the talks are held and which entities are conducted. It is worth recalling that in March 2018 the president of PGNiG Piotr Woźniak assured that the company “is able to guarantee stable and safe gas supplies to Ukraine thanks to a diversified gas portfolio that comes both from our own extraction in Poland and from import – including from regular LNG supplies from Qatar and the USA.

In October 2017, the possibility of delivering the American LNG over the Dnieper was not ruled out by the vice-president of PGNiG Maciej Woźniak. At the time, he stated that with good coordination a competitive offer of LNG supplies from the USA via Poland to Ukraine is possible. In December last year, the Ukrainian client of PGNiG confirmed that it had already received a delivery of American gas from Poland, which was delivered to the terminal in Świnoujście, which reported. We suggested that this type of transaction could be concluded in April 2017.

Texas in Ukraine?

What is new, however, is that Naftogaz speaks openly about talks on gas supplies from the United States. Perhaps this is the effect of the last visit of American secretary Rick Perry in Poland and Ukraine. According to him, Ukraine may be the leading importer of LNG, mainly from Poland, but it could also sell this gas further. Kiev can become a beneficiary of the growing Polish-American energy cooperation.

From November 25, 2015, Ukraine stopped direct gas purchases from Gazprom. Since then, Naftogaz has been collecting fuel on the basis of reverse deliveries carried out on gas connections with Poland, Slovakia and Hungary. According to data from Ukrtransgaz, from January to October 2018 Ukraine imported 8,065 billion cubic meters of gas, which in comparison with the same period last year means an increase of 24,7 percent. From the direction of Slovakia over the Dnieper, 5,017 billion cubic meters were delivered. (-36.4% y / y), from Hungary – 2,50393 bcm. (+ 27,9% y / y), and from Poland – 0,5387 bn cubic meters. (-37.4% y / y).