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    PGNiG resells US LNG in Ukraine

Summary

The only thing holding back increased gas supplies to Ukraine is pipeline constraints, according to PGNiG.

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Liquified Natural Gas (LNG), Premium, Corporate, Import/Export, Infrastructure, News By Country, Poland, Ukraine

PGNiG resells US LNG in Ukraine

Poland’s PGNiG plans to deliver an LNG cargo it bought from US to Ukraine, the company reported on August 29.

The batch, due to arrive at Poland’s LNG import terminal in Swinoujscie in early November, has been resold to US investment firm Energy Resources of Ukraine (ERU). After being regasified, it will be transported by the end of the year to Ukraine via a gas connection at Hermanowice near the two countries’ border.

PGNiG began exporting gas to Ukraine in August 2016, with ERU the recipient of these supplies. Its 5bn m3/yr Swinoujscie terminal has seen increasing use, with the plant accounting for more than 20% of Polish gas imports last year, according to PGNiG, up from 8.5% in 2016. Poland gets the rest of its gas from Russia.

According to PGNiG president Piotr Wozniak, the only thing holding back an expansion in gas sales to Ukraine is capacity constraints at the Silesia–Podkarpacie pipeline. The pipeline is due to be enlarged by 2021 at the latest, he said.

“Thanks to the partnership with our Polish companion, we are making tangible breakthroughs in building a transatlantic gas supply corridor from the USA to Ukraine,” ERU president Dale Perry said in a statement.

ERU said it intended to store the gas shipment for delivery to customers in the 2019-2020 heating season. And, taking into account the "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," it said.

Ukraine relies on a mix of domestic production and imports from its EU neighbours to cover demand, having stopped purchases from its once-mainstay supplier Russia in 2015.