US-based Venture Global LNG has signed a head of agreement (HOA) with DTEK’s commercial arm, D. TRADING, to supply LNG to Ukraine and eastern Europe.
The deal is set to commence later this year and will continue beyond 2026.
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It is expected to bolster near to medium-term energy security for Ukraine and the broader eastern European region.
Under the terms of the HOA, D. TRADING will purchase LNG cargoes from Venture Global’s 20 million tonnes per annum (mtpa) Plaquemines LNG facility in Plaquemines Parish, Louisiana.
Additionally, D. TRADING has agreed to buy up to 2mtpa of LNG from Venture Global’s third facility, Calcasieu Pass (CP) 2 LNG, for a duration of 20 years.
The HOA further includes provision for accessing regasification terminal and gas pipeline capacity, offering an integrated transportation route to enhance the region’s energy security.
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By GlobalDataThe initial phase of CP2 has already seen sales and purchase agreements for 20-year terms with companies such as Chevron, China Gas, EnBW, ExxonMobil, Inpex, JERA, New Fortress Energy and SEFE.
Venture Global is currently in discussions for the remaining capacity of CP2 and has initiated offsite construction while awaiting project approvals from US regulators.
According to Reuters, Ukraine currently lacks regasification terminals for LNG imports, but DTEK has secured regasification capacity elsewhere in Europe, with pipelines connecting to Ukraine.
Venture Global CEO Mike Sabel said: “Venture Global is proud to partner with D. TRADING to support Ukrainian and eastern European energy security by supplying short-term and long-term US LNG from our Plaquemines and CP2 facilities.
“With this landmark agreement, we will help bolster Ukraine’s security of natural gas supply, aid continued recovery and economic growth in the region, and further strengthen European energy security,”
D.TRADING CEO Ivan Geliukh said: “At D.TRADING we believe that this heads of agreement marks a significant milestone in our commitment to support Ukraine and the EU in the process of decarbonisation, as well as energy security for Europe.”
Earlier this year, Ukraine joined an initiative to establish a gas corridor from Greece to northern countries, and it also has a pipeline link with Poland, which possesses an LNG terminal.
With the current five-year deal with Russia’s Gazprom set to expire at the end of the year, Ukraine has declared it will not renew the agreement and is actively seeking alternative gas supply options.
