Ukraine signs first long-term contract for LNG terminal use in Europe

Business & Economy June 10, 13:55

This covers access to the terminal's infrastructure in Klaipeda, Lithuania, for the period from 2033 to 2044

MOSCOW, June 10. /TASS/. Ukrainian company Naftogaz has signed the first long-term contract for the use of a regasification terminal in a European country, the company announced on its Telegram channel.

"For the first time, the Naftogaz Group has booked long-term capacity at an LNG terminal in Europe. This covers access to the terminal's infrastructure in Klaipeda, Lithuania, for the period from 2033 to 2044," the statement reads.

Earlier, Naftogaz carried out such operations in partnership with other companies. Naftogaz will be able to use the terminal's capacity alongside four other companies: Norway's Equinor, Finland's Gasum, Lithuania's Ignitis, and Latvia's Latvenergo.

The gas shortage arose after Russian gas transit to Europe through Ukraine was completely halted on January 1, 2025, following Kiev's refusal to renew its agreement with Gazprom. The transit halt increased Ukraine's own demand for technical gas to maintain pipeline pressure. As a result, Kiev is forced to purchase fuel on the European market at high prices. Naftogaz began importing gas, steadily increasing its purchases.

Ukraine is currently purchasing gas from Poland, Hungary, and Slovakia. Kiev is also exploring opportunities to import American LNG and has already contracted several shipments for delivery through terminals in Germany, Lithuania, and Poland. According to Naftogaz CEO Sergey Koretsky, the company plans to import 1 billion cubic meters of American LNG this year. The company is also constantly negotiating with Western partners for new grants or loans to finance increasing imports. Ukraine is also attempting to organize supplies through the so-called Trans-Balkan Corridor, but its capacity regularly remains unused.

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