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Ukraine signs LNG deal with Poland’s Orlen amid Russian attacks

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Ukraine signs LNG deal with Poland’s Orlen amid Russian attacks
Illustrative purposes: An LNG cargo ship moored in a German port in the Baltic Sea on April 18, 2024. (Stefan Sauer/picture alliance via Getty Images)

Ukraine's largest state-owned energy company, Naftogaz, and Poland's petroleum refineries company, Orlen, have signed a contract for the supply of approximately 100 million cubic meters (mcm) of liquefied natural gas (LNG), Naftogaz announced on March 7.

As Russia continues targeting Ukraine’s energy grid — specifically its gas infrastructure —domestic gas production has declined due to Russian strikes, forcing Ukraine to increase imports.

The gas supply agreement was formalized alongside a strategic cooperation document on LNG supply, Naftogaz said.

"Partnering with Orlen strengthens energy security, diversifies supply routes, and accelerates Ukraine's integration into the European gas market," said Roman Chumak, acting CEO of Naftogaz.

The gas will come from an LNG shipment delivered to a terminal in Klaipeda, Lithuania. From there, it will be transported through Lithuania and Poland before reaching Ukraine via the Drozdovychi interconnector, where Naftogaz will receive it.

Robert Soszynski, vice president of Polish Orlen, described the cooperation agreement as "mutually beneficial."

"Our relationship will be based on commercial terms, but securing an additional gas source is also crucial for Ukraine’s security," he said.

On Feb. 11, Russia launched a combined missile and drone attack on Ukraine, primarily targeting Poltava Oblast and damaging Naftogaz production facilities in the region.

Before the full-scale invasion, Ukraine produced 52 million cubic meters (mcm) of gas per day but required 110-140 million mcm in winter, covering the shortfall from storage. Russian attacks have since reduced Ukraine’s domestic gas output, increasing its reliance on foreign purchases.

Ukraine plans to import about 3.5 billion cubic meters of gas for the upcoming heating season due to ongoing Russian attacks on its energy infrastructure, Bloomberg reported on March 4.

At the start of 2025, Ukraine halted its agreement with Russia to transport Russian gas to European customers via Ukrainian pipelines. The deal expired at the end of 2024 and was not renewed.

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