Orlen to supply US LNG cargo to Ukraine’s Naftogaz

Naftogaz said on Tuesday it had signed a deal with Orlen to buy an additional 100 million cubic meters of LNG.

After regasification, the gas supplies will be transported to the Polish-Ukrainian border.

Naftogaz said the gas supplies will be transported to Ukraine in April and will be used to create strategic gas reserves, which are crucial for Ukraine’s energy security and for ensuring the stable passage of the next heating season.

The firm did not provide further details regarding the shipment.

Naftogaz nothed this is the second gas supply deal under the companies’ memorandum of understanding (MoU), following an earlier agreement for the supply of 100 million cubic meters of gas from an LNG cargo.

Orlen said in a separate statement that the US LNG cargo will be delivered to the Świnoujście LNG terminal in Poland.

The firm will supply the first cargo via the 170,000-cbm FSRU Independence in Lithuania’s Klaipeda.

Ukraine has no LNG import facilities.

Orlen has secured long-term regasification capacity at the FSRU-based facility in Klipaeda, reserved until 2032, allowing it to import via the terminal over 0.5 billion cubic meters of natural gas annually.

It also uses KN Energies’ small-scale LNG terminal in Lithuania’s Klaipeda.

In Poland, Orlen imported LNG via the Gaz-System-operated import facility in Swinoujscie, which was expanded to about 8.3 bcm per year.

In addition,  Orlen booked 6.1 bcm per year of regasification capacity at Gaz-System’s planned FSRU-based LNG import facility in Gdansk.