Ukraine intends on purchasing US gas for first time ever
Date
6/23/2024 8:40:07 AM
(MENAFN) Ukraine's largest private energy company has announced a groundbreaking agreement with a United States firm to import liquefied natural gas (LNG), marking a significant milestone in the nation's efforts to enhance energy security and reduce dependence on Russian energy supplies.
DTEK Group's trading subsidiary, D.Trading, finalized the deal to procure LNG from a Louisiana-based facility operated by Venture Global LNG, according to a statement released by the Ukrainian company. This agreement, struck during the Ukraine Recovery Conference in Berlin, is the first substantial arrangement for LNG supplies to Ukraine and Eastern Europe.
CEO Ivan Geliukh of D.Trading emphasized the strategic importance of the deal, stating that it will bolster Ukraine's natural gas supply security, support ongoing economic recovery, and contribute to strengthening energy security across Europe. The agreement encompasses both short-term and long-term supply arrangements.
Under the terms of the deal, D.Trading plans to commence LNG imports later this year and continue purchasing the fuel through 2026. Reports indicate that the company will import up to two million tons of LNG annually over a 20-year period from another Venture Global facility, highlighting the long-term commitment to diversifying Ukraine's energy imports.
Currently lacking regasification terminals for LNG, Ukraine has secured contracts to utilize capacities in European countries with pipeline connections to facilitate the transport of LNG imports. This strategic move underscores Ukraine's proactive steps to reduce reliance on Russian energy imports, particularly amid geopolitical tensions and concerns over energy security in the region.
The agreement represents a significant shift in Ukraine's energy strategy, marking a decisive move towards diversifying energy sources and reducing dependence on Russian natural gas.
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