Ukraine and Poland are planning to establish an Eastern European gas hub to supply the region with gas from sources other than Russia. TSN reports. This was announced by Kontrakty.UA.
The Ministry of Energy of Ukraine has made this announcement.
The ministry stated that Ukrainian underground gas storage facilities combined with Polish LNG terminals could form the basis of a new business model for gas supply to the region, replacing traditional transit from Russia.
"The end of transit creates the beginning of competition for new routes and resources, among which LNG is actively increasing its share in the overall EU balance. The integration of gas markets based on existing infrastructure and the increase of available cross-border capacity provides a boost to trade and the opportunity to replace Russian gas with independent molecules," said Mykola Kolisnyk, Deputy Minister of Energy of Ukraine.
The Ukrainian side has already reached out to partners with a proposal to conclude agreements for the development of cross-border entry-exit points of the gas transmission system and to increase capacities.
"Our forecasts are clear. We expect the introduction of long-term and medium-term procedures for contract signing in a business mechanism similar to business models in the USA. This will help Ukraine and Poland store as much gas as needed for all of Eastern Europe. In this particular case, this deregulated and physically developed capacity between our governments will help redirect the portion of natural gas that was previously supplied by Russia," Kolisnyk added.
The ministry reminded that in March 2024, Ukraine and Poland signed a Memorandum of Cooperation outlining strategic steps for the integration of gas markets, creating guaranteed capacities at borders, and developing the transportation of liquefied natural gas.
It is worth noting that European leaders will discuss with Zelensky the transit of Russian gas through Ukraine.