In a significant move set to bolster Ukraine's energy independence and regional energy security, Polish energy giant ORLEN and Ukraine's state-owned Naftogaz Group have signed a comprehensive memorandum of understanding (MoU). The agreement, formalized at the Newfolk Oil & Gas conference in Lviv, signals a deepening of strategic cooperation across the energy value chain.
This expanded partnership arrives at a critical juncture for Ukraine, which continues to seek robust diversification of its energy supply sources amidst ongoing geopolitical challenges. The MoU outlines joint efforts to increase the flow of natural gas and crude oil into Ukraine via Poland, alongside advancing collaborative projects in oil and gas extraction within Ukraine itself.
A key facet of the MoU involves Naftogaz leveraging ORLEN’s extensive technical expertise. This will be crucial for the modernization of the Kremenchuk oil refinery, a vital piece of Ukraine's energy infrastructure. Furthermore, ORLEN's assistance will be invaluable in the refurbishment of gas infrastructure that has sustained damage during the ongoing conflict.
Beyond traditional fossil fuels, the agreement also paves the way for joint investment projects in fuel distribution and, notably, the development of the biofuels segment. This forward-looking aspect of the partnership aligns with global energy transition trends and could contribute to Ukraine's long-term energy sustainability.
The Lviv memorandum builds upon a foundational cooperation agreement under which ORLEN had already secured three contracts to supply a total of 300 million cubic meters of LNG to Ukraine. This prior success established a solid basis of trust and operational efficiency between the two companies.
Currently, the ORLEN Group is a significant supplier of refined petroleum products to the Ukrainian market, including gasoline, diesel oil, and bitumen. They also provide specialized services to upstream sector operators in Ukraine, demonstrating a consistent commitment to supporting Ukraine's energy needs.
Ireneusz Fafara, CEO and President of the Management Board of ORLEN, underscored the strategic importance of this collaboration. "The agreement we have signed stands as further evidence of our strategy being effectively put into action. ORLEN is becoming a cornerstone of energy security not only for Poland, but for the broader region," Fafara stated. He highlighted the progression of their partnership, noting that this new phase of deeper cooperation follows the successful initial deliveries of US LNG to Naftogaz. "Together, we can achieve more," he added, emphasizing the synergistic potential of the alliance.
Sergii Koretskyi, CEO of Naftogaz Group, echoed this sentiment, expressing optimism for the future of the partnership. "I believe we can elevate our partnership to an entirely new level," Koretskyi remarked, extending his gratitude to the Polish counterparts, and specifically to Mr. Fafara, for their "constructive dialogue and their genuine support for Ukraine."
