Ukraine has received its first shipment of liquefied natural gas (LNG) from the United States, marking a significant step in the nation’s and Europe’s efforts to reduce reliance on Russian energy as Donald Trump prepares to assume office as the US president.
DTEK, Ukraine’s largest private energy company, facilitated the import via the Mediterranean, with the LNG vessel docking at a Greek terminal on Friday.
“Imports like this are critical for providing a flexible and secure source of energy while also diminishing Russia’s influence over our regional energy framework,” noted Maxim Timchenko, DTEK’s CEO.
While the US supplies approximately 40% of Europe’s LNG imports, this marks Ukraine’s first direct purchase. The timing coincides with the impending expiry of a five-year agreement allowing Russian gas transit through Ukraine and comes just weeks before Trump’s presidential inauguration.
Despite Europe increasing its LNG imports post-Russian invasion in 2022, the pipeline through Ukraine remains responsible for about 5% of the EU’s gas imports. Trump has cautioned that he may impose tariffs on Europe unless more US oil and gas are purchased, and has also signaled uncertainty regarding continued military support for Ukraine.
DTEK acquired a full LNG cargo equivalent to about 100 million cubic meters of natural gas. According to Greece’s National Natural Gas System Operator, DTEK will retain about 10% of the gas, with the rest being sold to Greek companies.
“This US LNG acquisition by a major Ukrainian energy firm is noteworthy as it aligns with potential major shifts in the gas market,” observed Tom Marzec-Manser, an independent gas analyst.
He further highlighted, “While Ukraine refrains from purchasing Russian gas directly, the cessation of Russian supply to central European customers via Ukraine could render these additional volumes vital for regional energy security.”
The LNG delivery coincides with heightened Russian attacks on Ukraine’s energy infrastructure, the latest occurring on Christmas Day, which left over 500,000 residents without basic utilities.
DTEK entered into an agreement with US company Venture Global for LNG supplies in June, with purchases extending through 2026. Additionally, they maintain a separate 20-year LNG procurement contract.
Venture Global, among the largest US LNG developers, recently filed for an initial public offering (IPO). The Financial Times previously reported that the company aims to raise between $3 billion and $4 billion, potentially marking the largest energy IPO in more than a decade and one of the most substantial in US history.
