Ukraine, Poland Plan Gas Hub To Cut Russian Dominance

Poland and Ukraine plan to develop a regional gas hub on the Poland-Ukraine border that would supply the region with gas other than Russia’s, in a bid to end Central and Eastern Europe’s dependence on Russian gas and have prices aligned to European standards, OilPrice.com reports.

Polish and Ukrainian government officials expressed hope on Tuesday that the regional hub could be set up by 2022 on the border between the two countries, The Associated Press reports.

According to AP, the future gas hub would deliver gas to Central and Eastern Europe from Western Europe, LNG that had docked at Polish ports, and from a new pipeline planned to ship gas from the North Sea to Poland.

This new pipeline, Baltic Pipe, is a project for a potential new gas pipeline that would provide Denmark and Poland with a direct access to Norway’s gas fields. The project is in its early stages, with exact routing yet to be detailed and environmental impact assessments to be made. According to Denmark’s Energinet, one of the parties in the project together with Poland’s GAZ-SYSTEM SA, the final investment decision on Baltic Pipe is expected to be reached by 2018.

Russia’s gas giant Gazprom says that its share of Europe’s gas consumption grew to a record high of 34 percent in 2016. In Central and Eastern Europe, however, Gazprom’s dominance is much higher in some countries, and Moscow is often viewed as politicizing natural gas sales. Poland has been pushing against plans for Nord Stream 2, an expansion of an existing pipeline that runs from Russia to Germany via the Baltic Sea.

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