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FT: Ukraine signs first major deal with US company for LNG supplies

by Kateryna Denisova June 13, 2024 11:36 AM 2 min read
U.S. exporter Venture Global LNG will begin shipping transatlantic cargoes to a Ukrainian company in 2024, the Financial Times reported. (Venture Global LNG)
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U.S. Venture Global company signed the first major deal to supply liquefied natural gas to Ukraine, the Financial Times (FT) reported on June 13.

The move by Washington aims to reduce Russia's energy dominance in the region and boost Ukraine's energy security as Moscow intensifies attacks on gas storage facilities and critical infrastructure.

Under the deal, DTEK, Ukraine's largest private energy company, will start purchasing an unspecified amount of LNG from Venture Global later in 2024 and throughout 2026.

Ukraine and other Eastern European countries will reportedly receive gas from Venture Global's Plaquemines plant, located on the Gulf Coast of Louisiana.

Ukraine has never purchased U.S. liquefied natural gas directly before. It is not specified how much of Ukraine's gas demand would be served by the agreement.

"With this landmark agreement, we will help bolster Ukraine’s security of natural gas supply, aid continued recovery and economic growth in the region, and further strengthen European energy security," said Mike Sabel, Venture Global’s chief executive.

DTEK also has committed to buying up to 2 million tons of LNG per year over a 20-year period from the yet-to-be-built Venture Global's CP2 project, according to the FT.

Much of the volume in the Venture Global deal can be reportedly shipped to other countries through D Trading, DTEK's commodities trading subsidiary, which is the counterparty to the deal.

In mid-April, the European Parliament voted to pass rules allowing member states to ban imports of Russian LNG as part of Brussels' strategy to reduce the bloc's energy dependency on Moscow.

According to European Commissioner for Energy Kadri Simson said, the EU is also working on a proposal to limit imports of Russian LNG as part of the upcoming 14th package of sanctions.

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