DTEK plans to announce new deals to supply LNG to Ukraine in coming months
Ukraine's largest private energy company, DTEK, expects to announce a deal within the next two months to import liquefied natural gas into Ukraine, Chief Executive Officer Maksym Timchenko said.
Bloomberg reported, referring to Timchenko speaking at IE Week in London held on February 25-27, that the firm, through its trading arm (D.Trading), is in talks with several sellers for a two-year supply contract.
Most of the potential partners are in the United States.
It's also discussing deals for 10-20 years with suppliers that include Mideast producers, he said. Timchenko declined to name any counterparts, saying some negotiations are still in early stages.
"We want to build medium-term and long-term business. We want to see Ukraine be an offtaker with gas storage facilities," приводит издание слова главы ДТЭК.
DTEK is targeting imports of one cargo a month, which would be "a success" for a newcomer to the market, Timchenko said.
He added that DTEK delivered the first U.S. LNG cargo to Ukraine in December via an import terminal in Greece. DTEK is considering using terminals in Poland, Lithuania, Croatia and Germany, as well.
As previously reported, in late December 2024, Ukrainian energy company DTEK received its first shipment of 100 million cubic meters of liquefied natural gas (LNG) from the United States after the vessel docked in Greece. The LNG was expected to be regasified and transported through the gas networks of the EU and Ukraine.
DTEK noted that this was the first of several planned shipments from the United States, with the company seeking to expand its LNG operations into Northern Europe and the Baltic region.
D.Trading, DTEK's trading division, explained that it opted to ship its first LNG cargo via Greece due to transit restrictions in the Black Sea and direct deliveries to Ukraine amid the ongoing war. Instead, the company plans to use regasification terminals such as Revithoussa and cross-border pipeline infrastructure, including the Vertical Corridor initiative, which facilitates gas transportation between Greece, Bulgaria, Romania, Hungary, Slovakia, Moldova, and Ukraine.
In June 2024, U.S. LNG producer Venture Global and D.Trading signed an agreement to supply LNG to Ukraine and Eastern Europe from late 2024 through the end of 2026 to support Ukraine's medium-term energy security needs and the broader Eastern European region.
Under the agreement, D.Trading will purchase up to 2 million tonnes of LNG annually from Venture Global's CP2 LNG facility for 20 years. The deal also includes provisions for cooperation on access to regasification terminals and pipeline infrastructure.