Orlen LNG to sell 140 million cubic meters of US LNG to Ukraine's Naftogaz

Naftogaz, Ukraine's energy company of state, has signed a deal to purchase 140 million cubic meters (mcms) of U.S. Liquefied Natural Gas from Poland's Orlen.

After Russian shelling, Ukraine's storage sites are almost empty and it needs to import large quantities of gas in order to meet its heating requirements for 2025/26.

"Naftogaz diversifies its sources and routes for gas supply." "This increases Ukraine's energy resilience and security amid the ongoing full scale war with Russia," Naftogaz Chief Executive Officer Sergii Koretskyi stated in a press release.

Naftogaz announced that it has already purchased 440 mcm LNG from Orlen.

The company said that the gas will be regasified either at the LNG terminals in Swinoujscie, Poland, or Klaipeda in Lithuania. It will then be transported to Ukraine through the Polish gas transmission network.

Orlen has a contract for 100 mc

Sign

In April,

Last month, Ukrainian Energy Minister German Galushchenko stated that Ukraine

Need to Import

At least 4.6 billion cubic meters of gas is required for winter heating in 2025/26.

ExPro, a leading analysis firm, said that this week gas reserves were found in Ukrainian storage facilities.

Exceeding the Limits

As of June 28, 2008, 8 billion cubic meters (bcm), but they remain at their lowest levels in the past 11 years.

Ukrainian energy officials said that the country must accumulate approximately 13 bcm for the new heating seasons.

According to the data from Ukraine's gas distribution operator, the country will import approximately 26.4 mcm gas on Wednesday as opposed to 26.5 mcm gas on Tuesday. The gas would be imported from Poland, Hungary and Slovakia.

The Ukrainian underground storage facilities can store up to 30 billion cubic meters of gas. They are the biggest in Europe, and third in the world. (Reporting and editing by Louise Heavens, Joe Bavier and Pavel Polityuk)

(source: Reuters)