The United States sends its first natural gas shipment to Ukraine amid renewed concerns about supply.
Amid supply concerns, Russia's Gazprom is set to stop delivering natural gas to European countries.
This week, officials from the U.S. energy company confirmed that Ukraine has received its first shipment of liquefied natural gas (LNG), which is a positive development for Kyiv as it aims to increase its purchases of U.S. supplies and safeguard against broader supply concerns in the region.
DTEK, a private energy company in Ukraine, has received 100 million cubic meters of U.S. LNG through a shipment to an LNG regasification terminal in Greece.
In June, Ukraine's DTEK signed a supply deal with U.S.-based LNG supplier Venture Global, and now the news has been announced.
The DTEK contract marks the first significant LNG agreement between Ukraine and the U.S., enabling Ukraine to purchase an "unspecified" amount of LNG from Venture Global through 2026. Additionally, the companies signed a 20-year agreement, in line with traditional longer-term LNG supply contracts.
Gazprom is set to stop all piped gas deliveries to other European countries through Ukrainian pipelines, just hours before the expiration of its five-year contract.
While Ukraine does not buy Russian gas directly, the EU is still heavily dependent on imported gas, including from Russia.
Despite the abrupt shutdown of the Nord Stream 1 gas pipeline, the EU remains reliant on Russian gas for approximately 5% of its total gas imports, causing concern about how the bloc will manage in the event of a supply crisis or an unexpectedly cold winter.
Officials in Ukraine hope that additional U.S. supplies can help alleviate any near-term supply crises in the EU.
DTEK CEO Maxim Timchenko stated that cargoes like this not only offer the region a flexible and secure source of power but also diminish Russia's control over our energy system.
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