The LNG cargo, purchased by Ukraine’s largest private energy firm, DTEK, was delivered to a Greek terminal in the Mediterranean on Friday.
“Cargoes like this are not only providing the region with a flexible and secure source of power but are further eroding Russia’s influence over our energy system,” DTEK CEO Maxim Timchenko was quoted by the Financial Times as saying.
Although the U.S. supplies around 40% of Europe’s LNG imports, this is the first direct LNG purchase by Ukraine. It comes just before a five-year agreement permitting Russian gas transit through Ukraine expires, the Financial Times (FT) reported.
Despite Europe increasing its reliance on LNG since Russia’s 2022 invasion, gas transiting Ukraine still accounts for about 5% of the EU’s imports.
Friday’s LNG shipment has added significance as Donald Trump prepares to return to the White House.
Trump has floated the notion of imposing tariffs on European nations unless they boost purchases of U.S. oil and gas, adding economic pressure to energy discussions.
DTEK acquired the full LNG shipment, which equates to about 100 million cubic meters of gas. According to data from Greece’s National Natural Gas System Operator, roughly 10% of the shipment will remain with DTEK, while the rest is to be sold to Greek companies.
“It is significant that one of Ukraine’s major energy companies is receiving U.S. LNG on the eve of a potentially big gas market change,” Tom Marzec-Manser, an independent energy analyst, told the FT.
“Ukraine does not buy any gas itself from Russia, but if Russia is unable to supply central European buyers through Ukraine from January 1, then these extra volumes will be crucial for security in the whole of the region,” he added.
The delivery coincides with increased Russian attacks on Ukraine’s energy infrastructure. A Christmas Day strike left over half a million people without electricity, heating, or water.
DTEK’s agreement for the LNG shipment was signed with U.S.-based company Venture Global in June and secures purchases through 2026. The two companies also have a separate 20-year contract for further LNG supplies.
