FT: Ukraine has signed a contract to import liquefied gas from the US to weaken Russiaʼs energy influence

The DTEK energy holding concluded a contract with the American company Venture Global for the import of liquefied natural gas (LNG). Import volumes are still unknown. Deliveries should begin this year and continue until at least the end of 2026.

This was reported by the Financial Times (FT).

LNG will be supplied from the Venture Global Plaquemines plant on the coast of the Gulf of Mexico in the state of Louisiana to Ukraine and to many ports in Europe. A significant part of the volume of gas provided for in the agreement with Venture Global can be directed to other countries through D.Trading, a subsidiary of DTEK, which is a counterparty to the agreement.

"Thanks to this landmark agreement, we will help strengthen Ukraineʼs gas supply security, promote further recovery and economic growth in the region, and further strengthen European energy security," Venture Global CEO Mike Sabel said.

In addition, DTEK has committed to purchase up to 2 million tons of LNG from the future Venture Global CP2 plant over a 20-year period.

The deputy director for European energy security at the Atlantic Council Olha Hakova said that this agreement with the US can help Ukraine "drive the last nail into the coffin of Russiaʼs gas dominance in the country and the region as a whole." Earlier, Ukraine declared that it would not continue the transit of Russian gas through its gas transportation system.

As the FT writes, the agreement with Venture Global is the latest step towards achieving the big goal of the Administration of the current US President Joe Biden — to increase energy exports to Eastern Europe and thus reduce Russiaʼs influence in the region after its full-scale invasion of Ukraine in 2022.

Although Europe was already the largest importer of American LNG, Ukraine had never bought it directly before. Analysts say the deal coincides with Russiaʼs increased attacks on Ukraineʼs gas storage and power infrastructure, underscoring the urgent need to strengthen and diversify the countryʼs energy supply.

• Until now, Russia supplies approximately 15 billion cubic meters of gas per year to Europe through Ukraine. Slovakia and Austria remain the largest consumers of Russian gas.