03.10.2018 PGNiG and ERU’s new success in Ukraine
Polish Oil and Gas Company (PGNiG) and Energy Resources of Ukraine will supply natural gas to Ukrtransgaz, a gas transmission network and storage facilities operator.
The two companies have been contracted to supply more than 200 mcm of gas from October 2018 until May 1st 2019, exclusively for Ukrtransgaz’s own needs. The contract was awarded to the bidder offering the lowest price.
“ERU continues solidifying and growing its leading position on Ukrainian gas market. As a private company in 2017 ERU had been keeping largest volumes of gas in Ukrainian storages and repeats this result in 2018 which allows our company to be successful on very competitive domestic market. Strategic cooperation with PGNiG whose portfolio includes LNG in combination with political risk insurance provided by OPIC creates positive experience and stable basement for development and implementation of new ambitious projects in Ukrainian energy sector,” commented Yaroslav Mudriy, CEO of ERU Trading.
“The contract is a result of successful partnership between PGNiG and ERU, which is founded on very competitive business terms offered by PGNiG, in line with market rates. Since 2016, we have been consistently building our brand on the Ukrainian energy market,” said Maciej Woźniak, Vice-President for Trade, PGNiG – Polish Oil and Gas Company. “Being the leader of the Polish gas market, PGNiG has the resources and experience that make the company a stable and reliable gas supplier. We already supply our customers with gas from diverse sources and geographies, including LNG from Qatar, USA or Norway, gas from other European markets, and gas produced by PGNiG in Poland. I am sure that once the Baltic Pipe is brought on stream to transmit gas from Norway to Poland, our position as a reliable and competitive supplier in the region will strengthen markedly,” he added.
Since August 2016 till the end of June 2018, PGNIG S.A. has exported more than 1.3 bcm of natural gas to Ukraine. ERU is PGNiG’s strategic partner on that market. The companies commenced their gas supplies to Ukrtransgaz in April 2017.
Polish Oil and Gas Company’s business comprises exploration for and production of natural gas and crude oil. Through its key companies, the PGNiG Group is also active in the area of import, storage, sale and distribution of gas and liquid fuels, heat and electricity generation, geophysical surveying, drilling and oilfield services. Its subsidiaries and branches carry out upstream operations in Norway and Pakistan, sell gas in Germany, and trade LNG through a London-based office.
ERU is a leading privately-owned supplier of gas in Ukraine. It offers portfolio management services covering export and supply of electricity, petroleum products, coal, agricultural products and other commodities on the Ukrainian market.
Ukrtransgaz is a state-owned operator of gas transmission networks and storage facilities in Ukraine. It is currently in the process of unbundling through a spin-off from NAK Naftogaz Ukrainiy, whose aim is to ensure compliance with EU regulations.
OPIC is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. Established in 1971, OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad. OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers.