Ukraine and Poland plan Eastern European gas hub to diversify supplies

Ukraine and Poland are planning to establish an Eastern European gas hub to ensure the region's gas supply from alternative, non-Russian sources, according to Ukraine's Ministry of Energy.

The department believes that Ukrainian underground gas storage facilities and Polish LNG terminals can create a new business model to replace Russian gas transit.

In March 2024, the countries signed a memorandum of cooperation aimed at improving interaction between their gas markets, establishing guaranteed capacities on interstate connections, removing barriers to cross-border trade, and utilizing Ukrainian gas storage facilities to enhance the region's energy security.

Ukraine has officially proposed signing documents to begin developing interstate "entry-exit" points in the gas transportation system on the border with Poland and to increase installed capacity.

"Our forecasts are clear. We expect the implementation of long-term and medium-term contracting procedures in a business mechanism similar to business models in the USA. This will help Ukraine and Poland maintain as much gas as needed for the entire Eastern Europe," said Deputy Minister Mykola Kolisnyk.

"In this specific case, this deregulated and physically developed transit capacity between our governments will help reroute that part of the natural gas that was previously supplied by the Russians," he added.

Poland's first stationary LNG terminal in Świnoujście has been operational since 2016, with a capacity of 6.2 billion cubic meters. The gas company PGNiG, part of the Orlen Group, is responsible for the supply.

Poland plans to launch an additional floating LNG terminal with a capacity of 6.1 billion cubic meters in 2027-2028.