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ERU in partnership with PGNiG to supply gas to Gas Transmission System Operator of Ukraine

Under a contract with Energy Resources of Ukraine (ERU), PGNiG will for the first time supply natural gas to Gas TSO of Ukraine. To date, PGNiG has already exported more than 3 bcm of natural gas to Ukraine.

Gas will be supplied under a contract awarded to ERU Trading as the successful bidder in a bidding round held by Gas TSO of Ukraine.The contract requires that gas supplies be provided in the period from October 1st 2020 to May 1st 2021. Gas TSO of Ukraine will use the gas for technical purposes. This will be the first time that PGNiG will supply natural gas to Gas TSO of Ukraine.

“We are glad to continue our cooperation with PGNIG and to jointly participate in the gas supply tenders for the newly formed independent Ukrainian gas transmission system operator. ERU has been able to offer the most competitive prices thanks to the support from PGNIG and we have increased our Political Risk Insurance from the United States DFC, to US$ 100 million, allowing our company to finance the supply of significant volumes and accept related credit risk exposure. Thanks to the joint efforts from all parties, we believe such tenders are excellent examples of business transparency and the growing trust in the Ukrainian gas market and its new TSO." - said Yaroslav Mudriy, Managing partner of ERU

Jerzy Kwieciński, President of the PGNiG Management Board, has stressed that gas supplies by PGNiG S.A. to Gas TSO of Ukraine are another example of the Company’s commitment to building a regional gas market in this part of Europe.

"Our strategy to optimise our natural gas portfolio using foreign infrastructure is delivering the expected results. With gas stocks held by PGNiG in underground storage facilities in Ukraine, we were able to offer our trading partner competitive terms,” said Jerzy Kwieciński. “PGNiG has been consistently developing its operations in Ukraine. This has translated into a fast increasing volume of our exports to that market, with more than 3 bcm of natural gas supplied by PGNiG to date, largely thanks to our strong business partnership with ERU, which has been providing tangible benefits to both companies.”

In H1 2020 alone, PGNiG's exports to Ukraine totalled 0.9 bcm, up 190% year on year.

Since 2020, Gas TSO of Ukraine has been the country’s certified gas transmission system operator, established through unbundling to bring Ukraine’s legal and regulatory environment in line with the requirements of the Energy Community Treaty.

About ERU

Energy Resources of Ukraine ("ERU") is a group of companies with foreign investments, which specializes in the implementation of projects in the Ukrainian energy sector, combines expertise formed for over 35 years of international projects implementation with deep understanding of the local market. ERU Management Services LLC is an American parent company, which is a part of the Group and carries out trading transactions and since July 2020 is the only company to supply gas to Romania from Ukraine.

The Group also includes ERU TRADING, which in July 2019 became the first Ukrainian company to have imported electricity from the European countries to Ukraine. ERU TRADING LLC continues to be the only company to have contracted American liquefied natural gas deliveries to Ukraine. www.eru.com.ua

Contact details:

(044)428-70-16

info@eru.com.ua

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