Ukraine’s Naftogaz Group said it has so far received 400 million cubic meters (14.13 billion cubic feet) of liquefied natural gas (LNG) from the United States under an agreement with Poland’s ORLEN SA.
The supply will be stored for the 2025-26 heating season, Naftogaz said in a statement on its website.
The state-owned companies have signed LNG contracts as part of a cooperation pact they penned March, which aims to diversify Ukraine’s gas supply sources.
“The import of American gas is carried out through two terminals – Swinoujscie in Poland and Klaipeda in Lithuania”, the statement said.
“In total, as of mid-September, about 450 mcm of American LNG has been contracted for delivery to Ukraine”.
Naftogaz chief executive Sergii Koretskyi commented, “One of the key sources of supply for us today is American LNG. We are implementing this project in partnership with the Polish state-owned company ORLEN. This allows us not only to diversify gas supplies but also to strengthen our strategic cooperation”.
In June ORLEN said it had signed another energy collaboration agreement with Naftogaz.
Under the new memorandum of understanding, “the parties will seek to increase natural gas deliveries via Poland to Ukraine and to advance joint projects in oil and gas extraction”, ORLEN said June 2. “These initiatives are expected to strengthen Ukraine’s resource security and flexibility.
“Naftogaz also stands to benefit from ORLEN’s technical expertise in the refurbishment of gas infrastructure damaged during the war.
“In addition, both companies intend to pursue joint investment projects across fuel distribution and development of the biofuels segment”.
ORLEN said in the statement it also continues to supply Ukraine with refined oil products.
As of September 10 Ukraine had 74.95 terawatt hours of stored gas, a 23.38 percent filling level, according to the latest update to the online dashboard of the European Network of Transmission System Operators for Gas.
The European Bank for Reconstruction and Development (EBRD) recently committed a two-year revolving loan of EUR 500 million ($586.92 million) to help Naftogaz Group procure gas for Ukraine. The European Commission signed an agreement with EBRD to guarantee 90 percent of the loan.
Contracts supported by the financing will be awarded competitively, with over 30 suppliers prequalified, according to a statement by the EBRD August 13.
The London-based bank has now provided four funding packages for Naftogaz since Russia invaded Ukraine in 2022, the statement said. The latest “brings the total bank financing to Naftogaz to EUR 1.6 billion, including EUR 1.27 billion in EBRD loans and EUR 330 million (NOK 3.63 billion) in grants provided by Norway via EBRD”, the statement said.
“The transaction will also support the reform objectives of previous EBRD engagement, with Naftogaz working towards the integration of the Ukrainian gas market with that of the EU”.
To contact the author, email jov.onsat@rigzone.com
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