Poland to Deliver More to Ukraine
Polish state-owned PGNiG will supply gas this winter to Gas TSO of Ukraine (GTSOU) through intermediary ERU Trading, it said September 28. GTSOU held a tender for gas supplies which ERU Trading won. PGNiG has already exported more than 3bn m³ of natural gas to Ukraine but the latest deal, from October 1-May 1 is its first with GTSOU and is for technical purposes. The gas is already in Ukraine, in storage but it did not say how much was to be sold.
ERU said it offered the most competitive prices thanks to the support from PGNIG and that it has increased its political risk insurance from the US to $100mn. This allows ERU 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.”
PGNiG boss Jerzy Kwiecinski said the company's "strategy to optimise our natural gas portfolio using foreign infrastructure is delivering the expected results. With gas stocks held by PGNiG in underground storage facilities in Ukraine, we were able to offer our trading partner competitive terms."
Polish exports to Ukraine are rising thanks to PGNiG's partnership with ERU "which has been providing tangible benefits to both companies,” he said. In H1 2020, PGNiG exported 0.9bn m³, up 190% year on year.