Polish energy company, ORLEN has signed an LNG co-operation agreement with Ukraine’s Naftogaz.
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This will allow Ukraine to create a more diversified supply of LNG, the Polish company said.
The first move under the agreement was ORLEN selling gas from an LNG cargo.
This agreement is a framework arrangement aimed at strengthening co-operation to enhance Ukraine’s energy security through the diversification of gas supply sources and routes to the country.
The document was signed by Robert Soszyński, Vice President of ORLEN Management Board, and Roman Chumak, Chairman of the Board of NJSC Naftogaz.
“The letter of intent between ORLEN and Naftogaz forms the foundation for long-term and mutually beneficial co-operation in the crucial area of energy commodities supply.
“Our relationship will be based on commercial terms, but securing an additional source of gas is vital for Ukraine also from the point of view of its security.
“It is through diversification that ORLEN ensures stable and competitive gas supplies for Polish consumers and can be a reliable partner for foreign counterparties,” Soszyński said.
“Ukraine has a robust gas transportation system and Europe’s largest underground storage facilities, offering unique opportunities for LNG market expansion,” added Chumak.
“Partnering with ORLEN strengthens energy security, diversifies supply routes, and accelerates Ukraine’s integration into the European gas market,” he said.
As part of the arrangement, ORLEN and Naftogaz signed a gas supply contract for around 100 mill cu m of gas.
This gas will be sourced from an LNG cargo to be delivered to Lithuania’s Klaipėda terminal.
Once regasified, the gas will be transported via the GIPL pipeline connecting Lithuania with Poland, and on through Polish territory to the interconnector on the Ukrainian border in Drozdowicze, where it will be received by Naftogaz.
