Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. to help Poland, Ukraine disconnect from Russian gas

Stock MarketsAug 31, 2019 01:35PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. U.S. Secretary of Energy Rick Perry speaks during a news conference in Jerusalem

WARSAW (Reuters) - The United States, Poland and Ukraine agreed on Saturday to enhance cooperation over secure gas supplies in the region which still relies on Russia.

"We're helping Poland to reduce its dependence on Russian gas," U.S. Energy Secretary Rick Perry told a news conference in Warsaw after meeting officials from Poland and Ukraine.

The Polish government official responsible for energy infrastructure, Piotr Naimski, said Poland, which has increased purchases of liquefied natural gas (LNG) from the United States in recent years, would be able to send six billion cubic meters of gas to Ukraine starting from 2021 compared to the current capability of 1.5 bcm.

"We will take every effort to diversify gas supplies to Ukraine, which is now completely dependent on Russian deliveries," Naimski told the same conference.

Perry, Naimski and Ukraine's Secretary of National Security Oleksandr Danylyuk signed a memorandum of understanding to enhance security of gas supplies in the region via LNG supplies from the U.S. through Poland's and Ukraine's infrastructure which still has to be expanded.

Under a policy it calls energy dominance, the administration of President Donald Trump, who canceled his trip to Warsaw earlier this week, is seeking to slash domestic regulations on energy production to boost oil and gas exports to allies and trade partners.

It is seeking to offer Europe alternative sources of gas to fuel sent via pipeline from Russia, which is generally cheaper than U.S. LNG, but has not always been reliable with Russia at times stopping deliveries to Ukraine and parts of Europe during pricing disputes.

More than a third of Russia's gas exports to the European Union cross Ukraine, which traditionally uses some of the gas pumped by Russia to European consumers for its own needs in eastern and central regions.

But the Russia-Ukraine gas transit agreement is due to expire in January and Ukrainian energy authorities are worried that Moscow could stop gas supplies through Ukraine, leaving some Ukrainian regions without gas in winter.

Also Poland, which is seen as one of Washington's closest allies in Europe, still buys most of the gas it consumes from Russia, has taken steps to cut this reliance after 2022 when its long-term deal on gas supplies from Gazprom (MM:GAZP) expires.

Poland's imports of LNG, including from the U.S., via the Baltic Sea terminal at Swinoujscie have jumped in recent years as part of a wider plan to cut reliance on Russian supplies.

Earlier this week Poland's state-run gas firm PGNiG (WA:PGN) said that it bought a cargo of liquefied natural gas from the U.S. and sold it to Ukraine.

U.S. to help Poland, Ukraine disconnect from Russian gas
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email