Ukraine stocking up on US LNG thanks to deal with Orlen

Poland’s Orlen Group has signed a liquefied natural gas (LNG) supply contract with Ukraine’s state-owned energy company Naftogaz.

According to Naftogaz, an additional 100 million cubic meters (cbm) will come from a shipment of U.S. LNG as part of the second deal under the memorandum of understanding (MoU) the two companies signed earlier this month.

The first deal also entailed 100 cbm of natural gas sourced from a cargo to be delivered to Lithuania’s Klaipėda LNG terminal. The gas was to be transmitted via the GIPL pipeline connecting Lithuania and Poland to the interconnector on the Ukrainian border in Drozdowicze, to be received by Naftogaz.

“Stable gas supplies remain our top priority. Cooperation with ORLEN expands Ukraine’s LNG import capacity and enhances energy security. We are diversifying supply sources to ensure a reliable and accessible gas supply, especially amid ongoing Russian attacks on our infrastructure,” said Roman Chumak, Acting Chairman of the Board at Naftogaz.

The LNG is scheduled to be transported to Ukraine in April, following regasification and transport to the Polish-Ukrainian border. It will be used to create strategic gas reserves, which the Ukrainian player says are crucial for energy security and stability during the next heating season.

“Another contract for the supply of gas to Naftogaz highlights the competitiveness of ORLEN’s offer. We continue to develop our trading expertise and leverage our experience in the U.S. market, enabling us to provide attractive commercial terms to our partners. At the same time, we are proud to contribute to Ukraine’s energy diversification, reinforcing our neighbour’s energy security,” noted Ireneusz Fąfara, CEO and President of the ORLEN Management Board.

Ukraine’s DTEK Group welcomed its first LNG shipment from the U.S. in December 2024, when approximately 100 million cubic meters of gas arrived at the Revithoussa LNG terminal in Greece. Working with Greek and other partners, the Ukranian player plans to regasify the LNG and send it through European Union and Ukrainian gas networks.