The Polish state oil and gas company PGNiG will invest $50 million in gas production in Ukraine, with a possible increase in capital investments up to $500 million.
This was announced by the Chairperson of the Verkhovna Rada Committee on Energy and Housing and Utilities Services Andriy Gerus, who was present at the signing of the agreement between PGNiG and ERU.
"PGNiG and ERU Management Services signed an important cooperation agreement that stipulates that the two companies create a partnership of 85%/15% and begin the implementation of a gas production project in western Ukraine. This is the first investment by Polish PGNiG in gas production in Ukraine. At the first stage, it is planned to invest $50 million," Gerus wrote.
The MP added that subsequently the volume of investments of the Polish company could reach $500 million.
Recall that in early September 2021 PGNiG signed a 20-year contract with the American Venture Global for an additional purchase of 2 million tons of liquefied gas per year. Thus, the volume of American liquefied gas supplies to Poland will reach 5.5 million tons per year, equivalent to or 7.4 billion cubic meters after regasification.
Context. PGNiG announced on August 30 that it had signed an agreement with the Ukrainian-American company Energy Resources of Ukraine (ERU). The agreement provides for joint geological prospecting work. As a result of the agreement, PGNiG will acquire 85% of Karpatgazdobycha.
In May, PGNiG obtained permission from the Antimonopoly Committee of Ukraine to acquire a controlling stake in Karpatgazdobycha. The miner is the property of ERU.
Last year, PGNiG sold 1.2 billion cubic meters of gas in Ukraine, and 210 million cubic meters were sold in the Q1 of this year.
Polskie Górnictwo Naftowe i Gazownictwo is the largest oil and gas company in Poland. It specializes in developing gas and oil fields, builds oil and gas infrastructure, as well as exports and imports energy resources.
Energy Resources of Ukraine is a group of companies that implements projects in the country's energy sector. It has foreign investment. Yaroslav Mudryy and Dale Perry are the group owners. In July 2019, ERU was the first to import electrical power from Europe.
Both companies have been exporting natural gas to Ukraine since 2016 and jointly supplying gas to Ukrtransgaz.