Ukraine Halts Gas Deliveries to Poland

Polskie Górnictwo Naftowe i Gazownictwo SA (PGNIG) has announced that the Ukrainian national oil and gas company Naftogaz Ukrainy, has halted the supply of natural gas to the town of Hrubieszów.

PGNiG states that Naftogaz Ukrainy has advised that reasons for the discontinuation of supplies include “changes to Ukraine's internal regulations, pursuant to which all the natural gas coming from Ukraine's domestic production should be used exclusively to meet Ukraine's own needs, which according to our Ukrainian partners prevents them from supplying gas to Poland. “

PGNiG says it “does not agree with the Ukrainian partners' argumentation concerning the basis for the discontinuation of supplies and will demand continued performance of the agreement, which remains binding until the end of December 2020."

"Negotiations on this matter are currently under way. PGNiG SA is hoping for their positive conclusion."

Despite the discontinuation of gas supplies, PGNiG said all customers in Hrubieszów have been receiving gas from reserves. The gas supplied to Hrubieszów accounted for about 0.6 per mille of Poland's total gas consumption.

Poland has collected 9 million cubic meters of gas per year through Hrubieszów.  Poland consumes about 14 bcm of gas a year of which it imports 70% of the total.

Ukraine produces about 20 bcm of gas a year of which approximated 90% of which is to serve domestic requirements.

Source: PGNiG