Argent LNG, Naftogaz to Explore US LNG Supply

Argent LNG and Ukraine's state energy company Naftogaz Group have signed a memorandum of understanding to explore long-term U.S. liquefied natural gas supply, transport and distribution cooperation, the companies said on Wednesday.

• The MoU covers potential LNG sales from Argent's planned 25-million-tonnes-per-annum (mtpa) export terminal at Port Fourchon, Louisiana.

• The agreement includes free-on-board cargoes, delivered ex-ship supplies into European regasification terminals and onward distribution through Naftogaz's underground storage network into Ukraine and neighboring markets.

• "Port Fourchon exists to put reliable American supply behind allies who need it — not as a one-off cargo, but as the kind of long-term infrastructure relationship that actually changes a country's strategic position," said Argent LNG chief executive Jonathan Bass.

• The companies said they also plan to explore possible cooperation with U.S. government financing institutions and European energy-security partners, consistent with U.S. and allied energy policy objectives.

• The non-binding agreement comes as Ukraine and other European countries seek alternatives to single-source and single-route gas supplies.

• Earlier this year, Argent applied to the U.S. Department of Energy for permission to export LNG to countries with and without free trade agreements with the U.S.

(Reuters)