First US cargo for Ukraine arrives in Poland

Thursday, 28 November 2019
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The first US LNG cargo bound for the Ukraine has arrived at the Polish receiving terminal at Swinoujscie. 

This shipment represents the start of an alternative, non-Russian gas supply for Ukrainian consumers. "US LNG is coming to Ukraine! Another step in helping Ukraine achieve energy independence," said the US Embassy in Kiev in a twitter post. 

Ukraine is dependent upon Russian natural gas for heating and power, and it levies fees on Russian energy producers for providing pipeline capacity to Europe via Ukrainian territory. At a time of high tension between Russia and Ukraine, the gas transit agreement is up for renewal next month.

On 2nd September, the US signed an agreement with Poland and Ukraine to formalise the supply of US natural gas to Kiev. The MOU calls for the shipment of up to 6 bill cu m per year to Ukraine by 2021.

“The US is ready to help Ukraine achieve its full energy potential with American technology, resources and support,” said outgoing US Secretary of Energy, Rick Perry when announcing the deal.

The first 90 mill cu m shipment was handled by Polish Oil and Gas Company (PGNiG) and Energy Resources of Ukraine, a private firm headed by longtime foreign-market utility executive Dale Perry and Ukrainian energy trader Yaroslav Mudryy.

“We contracted this volume for the purpose of injecting and storing it for further delivery to consumers in the winter season – this way we contribute to the country's energy safety during uncertain and especially risky winter period 2019-2020,” said Mudryy. “In this case, taking to the account 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."

 “Currently, the only limitation in the development of exports to Ukraine on an even larger scale is the capacity of gas pipelines in Poland in the direction of Silesia–Podkarpacie. We expect the capacity of these gas pipelines to be expanded by 2021 at the latest,” explained Piotr Wozniak, the head of PGNiG's board.

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