Poland’s PGNiG to supply gas for Naftogaz in Ukraine

Ukraine’s national oil and gas company Naftogaz has signed a contract with Polish Oil and Gas Industry Mining (PGNiG) for emergency gas supplies after Russian firm Gazprom decided to withdraw its existing supply.

Naftogaz claims it had not received any documents from Gazprom regarding its intention to terminate existing gas supplies or transit contracts with Ukraine.

Under the new contract with PGNiG, the Polish company will supply a volume of more than 60 million cubic metres (mcm) of gas through a connection in Hermanowice, which links the Polish and Ukrainian gas transmission systems.

Naftogaz CEO Andriy Kobolyev said: “The current situation around gas supply proves that our focus on diversification of supplies was the right decision.

“Thanks to our Polish partners, yet another attempt of Moscow to use gas as a political weapon against Ukraine has failed. I hope that the EU and governments of the relevant member states will consider this case when making their final decision on Nord Stream 2.”

Delivery under the contract with PGNiG will begin immediately and remain effective until the end of May.

The PGNiG management board president Piotr Woźniak said: “We are prepared to increase the volume of deliveries or extend the effective term of the contract, depending on Ukrainian market demand.

“PGNiG can ensure stable and secure gas supplies thanks to its diversified portfolio, which is a mix of domestic production in Poland and import supplies, including regular deliveries of liquid natural gas (LNG) from Qatar and the US.”

PGNiG holds exploration and production licences in Norway and in Pakistan. It delivered more than one billion cubic metres (bcm) of gas to Ukraine last year.

The Arbitration Institute of the Stockholm Chamber of Commerce has ordered Gazprom to pay $4.63bn in damages to Naftogaz for failure to meet gas transit obligations.