Tuesday, 02 January 2024 12:17 GMT

Poland negotiating deal to route US LNG to Ukraine, Slovakia


(MENAFN) Poland is reportedly negotiating arrangements to channel US liquefied natural gas (LNG) to Ukraine and Slovakia, according to sources familiar with the discussions. The initiative would further reduce Europe’s reliance on Russian energy and strengthen the EU’s dependence on American gas.

The EU’s 19th sanctions package, adopted in October, calls for a gradual end to Russian LNG imports. Under the measures, short-term contracts must conclude within six months, and all remaining Russian gas supplies, including LNG, are to cease by January 1, 2028.

However, several member states, including Hungary and Slovakia—which are heavily dependent on Russian gas—have criticized the plan, arguing that it could drive prices higher and jeopardize energy security.

Poland’s Energy Ministry stated that it is coordinating with the US, Slovakia, and Ukraine “on the possibilities of importing American gas to boost the energy security of our region.”

A joint declaration on increased imports is expected after a transatlantic energy conference in Athens later this week, one source noted. Discussions regarding supply terms for Slovakia are expected to follow. Volumes moving south through Poland could reach 4 to 5 billion cubic meters annually, roughly matching Slovakia’s yearly gas consumption, the source added.

“We hadn’t fully seized this historic opening that we have to get Europe off Russian energy and onto American, but now this administration is going full throttle and there’s a real shift,” an anonymous US official told reports.

Currently, the US supplies around 55% of LNG to the EU, and fully replacing Russian gas with American imports could push that share above 80%.

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