Poland’s Orlen to Supply Gas to Ukraine Under New Agreement
- 11-Mar-2025 12:45 AM
- Journalist: Li Hua
Polish energy giant Orlen has signed a memorandum of understanding with Ukraine’s Naftogaz to supply gas, marking a significant step toward enhancing Ukraine’s energy security. The agreement aims to diversify Ukraine’s sources and routes of gas supply, reducing its reliance on traditional suppliers. The initial phase will see Orlen deliver approximately 100 million cubic meters of gas, but the company has emphasized that this is part of a broader, long-term cooperation.
“Our goal is to establish a long-term and mutually beneficial partnership based on commercial terms,” said Robert Soszynski, Orlen’s vice president for operations. This collaboration comes at a critical time for Ukraine, as the country seeks to strengthen its energy independence while facing ongoing Russian attacks on its infrastructure.
The first delivery under this agreement will arrive as liquefied natural gas (LNG) at Lithuania’s Klaipeda terminal. From there, it will be transported via the GIPL pipeline through Poland to the Drozdovychi interconnector, where Naftogaz will receive it. This approach leverages existing infrastructure while ensuring a steady and reliable supply.
Roman Chumak, Naftogaz’s acting chairman, highlighted the strategic importance of the deal. “Ukraine has a solid gas transportation system and the largest underground storage facilities in Europe, offering unique opportunities for the development of the LNG market,” he said. “The partnership with Orlen strengthens our energy security, diversifies supply sources, and accelerates Ukraine’s integration with the European gas market.”
The agreement comes in the wake of Ukraine’s decision to halt all Russian gas transit through its territory as of January 1, 2025. This move was taken in response to Russia’s ongoing military aggression and attacks on Ukraine’s critical infrastructure. By securing alternative gas supplies, Ukraine aims to mitigate potential energy shortages and maintain stability in its domestic market.
Poland, too, has been actively working to reduce its dependence on Russian energy imports. Following Russia’s 2022 invasion of Ukraine, Warsaw accelerated its efforts to enhance energy security through diversification. The country has invested heavily in energy infrastructure projects, including the Baltic Pipe, which brings gas from Norway to Poland, and the expansion of its LNG terminal in Swinoujscie. These projects have positioned Poland as a key energy hub in Central and Eastern Europe.
Looking ahead, Poland plans to construct a second LNG terminal in the port of Gdansk, which is expected to supply not only Ukraine but also Slovakia and the Czech Republic. This project aligns with Poland’s broader strategy to strengthen regional energy security while expanding its role in the European energy market. By securing alternative gas sources and investing in infrastructure, Poland and Ukraine are taking proactive steps to ensure energy stability in the face of geopolitical challenges.