Ukraine and Poland plan to create an Eastern European gas hub that will replace the transit of Russian gas for Europe.

According to Deputy Energy Minister Mykola Kolisnyk, the completion of Russian gas transit through Ukraine will begin competition for new routes and resources, including LNG, which is becoming an increasingly large percentage of the EU’s overall consumption. Ukrainian underground gas storage facilities and Polish LNG gas terminals can create a new business model that will replace gas transit from Russia.

“Integration of gas markets based on existing infrastructure and increasing available interstate capacity give impetus to the development of trade and an opportunity to replace Russian gas,” Kolisnyk emphasized.

The Ministry of Energy added that the Ukrainian side has already officially addressed its partners with a proposal to sign documents to begin the development of interstate “entry-exit” points in the gas transportation system between Ukraine and Poland and to increase the installed capacity. This will help Ukraine and Poland store as much gas as is needed for all of Eastern Europe.