Ukraine receives its first LNG shipment from the United States, marking a significant step towards energy independence from Russia.
When will enough be enough?
At a Glance
- Ukraine received its first-ever 45,000-ton LNG shipment from the US via a Greek terminal
- The delivery is part of Ukraine’s strategy to reduce energy dependence on Russia
- DTEK, Ukraine’s largest private energy firm, has a long-term deal with US-based Venture Global
- The current Russian gas transit agreement through Ukraine expires on December 31
- This move aligns with broader European efforts to minimize Russian energy imports
A Historic Delivery for Ukraine’s Energy Independence
Ukraine received its first shipment of liquefied natural gas (LNG) from the United States on December 27, proving that there is no limit to the amount of support that President Joe Biden is willing to give to Ukraine. The 45,000-ton cargo, delivered via a Greek terminal in the Mediterranean, represents a crucial step in Ukraine’s efforts to diversify its energy sources and reduce reliance on Russian gas. This milestone comes at a critical time, as the five-year deal for Russian gas transit through Ukraine to Europe is set to expire on December 31, with no new agreement in place.
The shipment is particularly noteworthy as it marks the first direct purchase of US-sourced LNG by Ukraine, despite the United States supplying about 40% of Europe’s LNG imports. This development aligns with the broader European strategy to decrease dependence on Russian gas, especially in light of the ongoing conflict between Russia and Ukraine.
DTEK’s Role in Securing Ukraine’s Energy Future
DTEK, Ukraine’s largest private energy firm, played a crucial role in facilitating this historic delivery. The company has secured a deal with US energy group Venture Global for LNG shipments through 2026 and plans to purchase up to 2 million tonne per year from Venture Global’s CP2 facility over the next two decades. This long-term commitment underscores Ukraine’s determination to establish a stable and diverse energy supply chain.
“The arrival of this LNG cargo is a clear signal of DTEK’s determination to play its part in strengthening Ukraine and Europe’s energy security,” DTEK CEO Maxim Timchenko said in a statement.
“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. We are very grateful to the United States for the strategic contribution it is making to Europe’s energy security with such shipments,” he added.
This move by DTEK not only bolsters Ukraine’s energy independence but also contributes to the overall energy security of the European region. By diversifying its energy sources, Ukraine is taking a proactive stance in safeguarding its national interests and reducing vulnerability to potential supply disruptions.
The timing of this LNG delivery is particularly significant as it coincides with the expiration of the current Russian gas transit agreement through Ukraine. With no new agreement in place, the future of Russian gas transit through Ukrainian pipelines remains uncertain. Russian President Vladimir Putin has expressed concerns about Ukraine’s refusal to renew the transit agreement, suggesting it could have negative consequences for Europe.
“There is no contract and it is impossible to conclude it in 3-4 days,” Putin said, adding that Russia was prepared to supply gas to Europe via Poland through the Yamal-Europe pipeline.
However, Ukraine’s Prime Minister Denys Shmyhal has indicated a willingness to create a new transit agreement, albeit ruling out an extension of the existing deal with Russia. This stance reflects Ukraine’s commitment to maintaining its role in European energy transit while also pursuing its own energy independence goals.
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