ORLEN and Naftogaz have signed a memorandum of cooperation in the LNG sector. Its implementation will allow Ukraine to create a more diversified supply of this strategic commodity. The first outcome of the agreement is a transaction to sell gas derived from the regasification of an LNG cargo by ORLEN.
The Polish energy company and Naftogaz of Ukraine have agreed on the terms of cooperation in the supply of natural gas to Ukraine. The agreement is a framework arrangement aimed at strengthening cooperation to enhance Ukraine’s energy security through the diversification of gas supply sources and routes to the country. The document was signed by Robert Soszynski, Vice President of ORLEN Management Board, and Roman Chumak, Chairman of the Board of NJSC Naftogaz of Ukraine.
'The letter of intent between ORLEN and Naftogaz forms the foundation for long-term and mutually beneficial cooperation 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,' said Robert Soszynski, Vice President of ORLEN Management Board for Operations.
'Ukraine has a robust gas transportation system and Europe’s largest underground storage facilities, offering unique opportunities for LNG market expansion,' said Roman Chumak, Chairman of the Board of Naftogaz of Ukraine.'Partnering with ORLEN strengthens energy security, diversifies supply routes, and accelerates Ukraine’s integration into the European gas market.'
As part of the cooperation memorandum, ORLEN and Naftogaz also signed a gas supply contract for approx. 100 million cubic metres of gas. The gas will be sourced from an LNG cargo to be delivered to the terminal in Klaipeda, Lithuania. The gas will then be transmitted via the GIPL pipeline connecting Lithuania and Poland, and further through Polish territory to the interconnector on the Ukrainian border in Drozdowicze, where it will be received by Naftogaz.
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Source: Orlen
