25.04.2017 Polish gas wins a tender for the Ukrainian Ukrtransgaz

Joint success of PGNiG and ERU Trading: Polish gas wins a tender for the Ukrainian Ukrtransgaz. ERU Trading in cooperation with PGNiG SA to deliver 218 million cubic meters of gas from Poland to the Ukrainian storage and transmission network operator Ukrtransgaz in 2017

For the first time in the history of Ukrtransgaz, the contract will be implemented by companies not linked with the Ukrainian state-owned Naftogaz. Gas will be delivered by PGNiG to its Ukrainian partner ERU Trading, which is owned by the US company ERU Corporation. The delivered gas will be utilized by Ukrtransgaz for its own purposes of storage and system operations.

“We successfully launched gas exports to Ukraine last year. We keep analyzing further opportunities of natural gas sales in the opening Ukrainian market. It has been developing rapidly thanks to the implementation of European regulations and standards”, said Maciej Woźniak, Trade Vice-President of PGNiG SA. “ERU Trading’s win in the tender for one of the instalments of gas delivery to Ukrtransgaz proves that PGNiG’s purchase conditions are indeed very competitive. Good cooperation results with our Ukrainian partner ERU Trading provide us with an optimistic outlook into the future of PGNiG’s ongoing sales growth in Ukraine”, he added.

ERU has been active in Ukraine for the past three years and our success with this week’s Uktransgas tender is yet another major milestone. This step is significant for the market and for the gas suppliers”, stated Dale Perry, President of ERU Corporation. Dale also added, “this past week has been very active for ERU, starting with the signing of a $38 million insurance contract with the US Government’s OPIC, which provides contractual assurances during the delivery and storage of these large volumes of gas. Over the past year ERU has worked closely with PGNiG and today’s announcement is further evidence of the positive results achieved through our cooperative efforts.

The tender took place on an electronic purchasing platform, allowing participants and third parties to monitor the value of bids in real-time, thus providing transparency and equal conditions for all tender participants.

Ukrtransgaz is the state-owned storage and transmission network operator in Ukraine. The company is currently preparing for the EU-required unbundling process, as a result of which, it will be separated from the structures of NAK Naftogaz of Ukraine - the state-owned monopolist on the natural gas market. 

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Polskie Górnictwo Naftowe i Gazownictwo SA is the leader of the Polish natural gas market. PGNiG SA is listed on the Warsaw Stock Exchange as part of WIG 20, the index of the largest Polish companies. The company’s core business includes exploration and production of natural gas and crude oil fields and, through its key subsidiaries, import, storage, sale and distribution of gaseous and liquid fuels, as well as generation of heat and electricity. PGNiG SA has a stake in 29 companies, including entities providing professional geophysical, drilling and maintenance services, highly esteemed on international markets. PGNiG SA has branches in Russia, Belgium, Pakistan, Belarus, and Ukraine. PGNiG SA is also the sole owner of PGNiG Upstream International AS, a company engaged in exploring and operating deposits on the Norwegian Continental Shelf and the Norwegian Sea, POGC - Libya BV, a company engaged in exploring hydrocarbon deposits in the Murzuq Basin in Libya, PGNiG Sales & Trading GmbH based in Munich, a company engaged in gas trading, and PGNiG Finance AB based in Stockholm, which issues Eurobonds on the European market.

ERU TRADING is the largest private natural gas importer in Ukraine and offers its clients full range of energy portfolio management capabilities including electricity export and local deliveries, HFO supplies, coal deliveries as well as export of agricultural and other raw materials.