Polish Orlen to increase gas supply to Ukraine, advance joint extraction projects with Naftogaz

MOSCOW. June 2 (Interfax) - Poland's Orlen and Ukraine's Naftogaz have signed a memorandum of understanding on exploring and extracting hydrocarbons, developing deposits, and strengthening cross-border relations and commercial ties, the Polish company said in a statement.

"Under the terms of the MoU, the parties will seek to increase natural gas deliveries via Poland to Ukraine and to advance joint projects in oil and gas extraction. These initiatives are expected to strengthen Ukraine's resource security and flexibility. Naftogaz also stands to benefit from Orlen's technical expertise in the modernization of the Kremenchug oil refinery, as well as in the refurbishment of gas infrastructure [...]. In addition, both companies intend to pursue joint investment projects in fuel distribution and the development of the biofuels segment," the statement said.

This is the second cooperation agreement between Orlen and Naftogaz. The Polish company concluded three contracts for the delivery of 300 million cubic meters of U.S. LNG to Ukraine under the first one.

Currently, Orlen supplies Kiev with petroleum products, including gasoline, diesel fuel and bitumen, and provides specialized services to hydrocarbon production operators.