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Poland to sell Ukraine LNG purchased from U.S. in 2019

Christian Fernsby |
Polskie Górnictwo Naftowe i Gazownictwo purchased a liquefied natural gas (LNG) load from the USA, and then after regasification resold natural gas to Energy Resources of Ukraine (ERU).

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Topics: POLAND    UKRAINE    LNG    U.S.   

Due to the consistent expansion of the LNG supplier portfolio, PGNiG has the opportunity to offer natural gas to other customers.

The methane ship with the purchased cargo will arrive at the LNG Terminal President Lech Kaczynski in Swinoujscie at the beginning of November 2019.

Liquefied natural gas after regasification will be injected into the Polish transmission system in S'winoujs'cie, and then transferred to Ukraine via the border gas pipeline connection in Hermanowice to the ERU company.

Delivery to the Ukrainian partner will be carried out by the end of 2019.

Imports of liquefied natural gas to Poland are growing dynamically.

While in 2016 LNG accounted for about 8.5 percent in the entire import structure, in 2018 it was over 20 percent.

Since the commencement of the terminal in S'winoujs'cie, PGNiG has already received nearly 70 LNG loads with a total volume of approx. 7.5 billion cubic meters after regasification.

More and more loads are coming to Poland from the USA. While in 2018 PGNiG accepted one spot delivery of American LNG, by the end of August 2019 it had already received four spot deliveries, and moreover one under a medium-term contract and one under a long-term contract.

"We contracted this volume to enter it into the system and store it for later delivery to consumers in the winter season. In this way, we contribute to the country's energy security during the uncertain and particularly risky winter of the turn of 2019 and 2020," said Yaroslav Mudryy, Director of ERU TRADING LLC.

"In this case, given the well-developed gas transport system, Ukraine does not have to be the last destination of US LNG. This gas can be successfully delivered to countries such as Hungary, Romania and even Moldova," he added."

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