The Cabinet of Ministers at a meeting on May 27 approved a memorandum with Louisiana Natural Gas Exports on possible LNG supplies from the United States to Ukraine and the development of gas infrastructure with Poland. “The Ministry of Energy and Environment Protection has worked out a draft memorandum of cooperation between Louisiana Natural Gas Exports and the Cabinet of Ministers of Ukraine on facilitating gas supplies to Ukraine and improving gas infrastructure, which provides for exploring the possibility of diversifying natural gas supply routes by ensuring long-term supplies of liquefied natural gas and developing cross-border gas infrastructure in Ukraine and the EU,” Olha Buslavets, the acting Minister of Energy and Environment Protection, said.
According to data released by MP Oleksiy Honcharenko (the European Solidarity faction) on Telegram, the document provides for an annual LNG supply of about 5.5 billion cubic meters, and its price will be determined in accordance with the prices on the American gas exchange Henry Hub.
The memorandum, in particular, provides for the construction of a new gas pipeline between the gas hub Hermanowice (Poland) and the Bilche-Volytsko UGS facility. Project funding may include support of certain U.S. and European government agencies.
Final agreements may include a long-term agreement for the supply of LNG from the United States to Ukraine, an agreement on gas storage in Ukrainian underground gas storage facilities, an agreement on the construction and operation of necessary infrastructure between Poland and Ukraine.
Ukrainian President Petro Poroshenko has said that the diversification of sources of gas supplies to Ukraine is a matter of national security. “Therefore, we are currently holding talks with Qatar’s leadership on supplies of Qatari liquefied natural gas. I want to congratulate you and say that Qatar can become an exporter of gas to our country, Ukraine. The gas can be supplied through the already operating regasification terminal in Poland. Ukraine can really get Qatari gas,” Poroshenko said in an interview with Qatari broadcaster Al Jazeera.
At the same time, according to the Ukrainian president, this is only the first step. “We agreed with our Qatari partners to invite our friends from Turkey to cooperation. We received their assurances of the possibility of implementing a project for the supply of Qatari natural gas directly through Turkey, and not only through Poland. We will be very happy to open our doors to Qatari companies so that they come to the Ukrainian energy market, it would be very important. I believe that the implementation of such a project would contribute to strengthening the energy security of my country,” Poroshenko said.
He also said that Ukraine annually exports $8 billion worth of goods to the Arab states, so cooperation with them occupies an important place in Ukraine’s economic strategy and foreign policy.
“Therefore, Ukraine seeks to acquire observer status in the Organization of Islamic Cooperation. We enjoy the full support of our friendly Arab countries in order to obtain observer status in this organization. We expect and hope that we will eventually get such membership,” Poroshenko said.
