Polish energy giant ORLEN and Ukraine’s state-owned oil and gas company Naftogaz have solidified their partnership with the signing of a third gas supply agreement. This latest contract commits ORLEN to deliver an additional 100 million cubic meters (mcm) of natural gas to Ukraine, bringing the total contracted volume under their ongoing collaboration to a significant 300 mcm.

Under the terms of the agreement, ORLEN will import LNG sourced from the United States. This LNG will then be regasified at the Swinoujscie terminal, Poland’s flagship LNG import facility on the Baltic Sea coast. Subsequently, the gas will be efficiently transported through Poland’s extensive transmission network to the Ukrainian border, ensuring a secure and reliable supply route.

The foundation for this strengthened partnership was laid in March of this year with the signing of a letter of intent between the two companies concerning collaboration on gas supplies to Ukraine. The three contracts finalized since then, totaling 300 mcm, demonstrate the swift and effective implementation of this initial agreement.

This development underscores ORLEN’s increasing prominence as a crucial natural gas supplier in the region and plays a vital role in bolstering Ukraine’s energy security amidst ongoing geopolitical complexities. The agreement leverages ORLEN’s diversified gas supply portfolio, specifically US-sourced Liquefied Natural Gas (LNG), and the efficient infrastructure of the Polish transmission system.

Robert Soszynski, Vice President of the ORLEN Management Board for Operations, emphasized the importance of this partnership, stating, “The latest agreement with Naftogaz highlights ORLEN’s growing importance as a natural gas supplier in the region. Our partnership contributes significantly to strengthening Ukraine’s energy security through ORLEN's diversified gas supply portfolio and the efficient utilisation of Polish transmission infrastructure. We remain committed to further supporting Ukraine by ensuring access to stable and diversified gas sources.”

Echoing this sentiment, Roman Chumak, Acting Chairman of the Board at Naftogaz of Ukraine, highlighted the significance of this supply for Ukraine’s energy resilience. “This supply further strengthens the energy partnership between our companies and supports the delivery of a reliable resource to Ukrainian consumers. As we prepare for the next heating season, such contracts remain a key element of our strategy to diversify supply and bolster the country’s energy resilience,” Chumak stated.

The announcement of this third agreement coincided with the 14th edition of the ORLEN GAS Meeting, a prominent industry event focused on the future trajectory of the gas market and regional energy security. This timing underscores the importance of the ORLEN-Naftogaz collaboration within the broader European energy landscape.