Orlen’s supplies to Ukraine’s Naftogaz and Ukrnafta are aimed at stabilizing the domestic market as Ukraine’s energy infrastructure remains a key target of Russian attacks. Polish energy group Orlen may supply its Ukrainian state-owned peer Naftogaz with three deliveries of liquefied natural gas (LNG) early next year, while Ukrainian oil producer Ukrnafta could receive motor fuel up to a value of $500 million, Naftogaz said on Monday. The agreements were the subject of two memoranda of understanding signed during the Carpathian Eight Summit in Ukraine at the weekend, the first meeting of a newly launched regional cooperation forum. “If required, the additional LNG volumes will help meet Ukraine’s needs during the period of peak seasonal consumption,” Naftogaz said in a statement. Neither company disclosed the exact volume of gas Ukraine will receive at the height of the heating season. Winters have been a difficult time for Ukraine during its war with Russia, as energy infrastructure has been particularly targeted, causing blackouts and heating shortages. “Orlen is an important strategic partner for Naftogaz,” acting CEO Sergii Fedorenko was quoted as saying in the statement. “Amid ongoing Russian attacks on our domestic production facilities, it is particularly important for us to have reliable sources of gas supply and diversified delivery routes.” Fuel deal The agreements may also see Naftogaz’s upstream oil subsidiary Ukrnafta receive petroleum products worth up to $500 million in a move to “further strengthen the stability of fuel supplies amid the global oil crisis caused by events in the Middle East,” Naftogaz said. Fuel prices have soared globally due to disruption of supplies through the Strait of Hormuz, a key waterway off the coast of Iran that has been bottlenecked since Israel and the US launched hostilities against the Islamic Republic in February. In Ukraine, prices at the pump have risen by between 8% and 10% since the start of September, and diesel has approached the psychological threshold of 100 hryvnias (€1.95) per liter. Ukraine is fully dependent on imported fuel due to Russian aerial attacks destroying its refining capacity. However, despite the loss of its refineries, Ukraine continues to produce crude, and both Orlen and Naftogaz said the agreements will allow the parties to “explore the possibility” of Ukrnafta refining its crude elsewhere in Central Europe. Both companies said additional support from Orlen may involve the “transfer of used fuel tanker trucks to Ukrnafta for transporting petroleum products.” Ukraine no longer publicizes data on its crude oil output, but the year before Russia's 2022 invasion, it produced around 1.5 million tonnes of crude and gas condensates.
The agreements are aimed at stabilizing Ukraine’s energy market as the country’s infrastructure remans a key Russian target. (Orlen press materials)
