Ukraine receives first US gas shipments via Greece

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Ukraine has received its first shipment of liquefied natural gas from the US, as the war-torn country joins broader European efforts to fully wean themselves off Russian fossil fuels in preparation for Donald Trump’s return to the White House.

The country’s largest private energy company, DTEK, received the shipment via the Mediterranean, with a vessel arriving at a Greek LNG terminal on Friday.

“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,” said Maxim Timchenko, chief executive of DTEK.

Europe sources about 40 per cent of its LNG imports from the US, but none have ever been directly purchased by Ukraine before. The shipment comes just days before the expiry of a five-year deal allowing the transit of Russian pipeline gas through Ukraine and weeks ahead of Trump’s inauguration as US president.

The pipeline through Ukraine still accounts for about 5 per cent of the EU’s gas imports, even as the bloc has shifted to more LNG imports following Russia’s full-scale invasion in 2022. Trump, who has cast doubt about his administration continuing military support for Ukraine, has threatened to impose tariffs on European countries unless they buy more US oil and gas.

DTEK said it had purchased the entire LNG cargo, which was carrying about 100mn cubic metres worth of natural gas. Data from Greece’s National Natural Gas System Operator shows that DTEK will keep about a tenth of the gas, while the rest will be resold to Greek firms.

“It is significant that one of Ukraine’s major energy companies is receiving US LNG on the eve of a potentially big gas market change,” said Tom Marzec-Manser, an independent gas analyst.

“Ukraine does not buy any gas itself from Russia, but if Russia is unable to supply central European buyers through Ukraine from January 1, then these extra volumes will be crucial for security in the whole of the region,” he added.

The arrival of the LNG also coincides with Russia stepping up attacks on Ukraine’s energy system. The latest attack came on Christmas Day, which left more than half a million people without heating, water and electricity.

DTEK signed the deal for the shipment of LNG with US company Venture Global in June. Under the terms, DTEK’s purchases will continue through the end of 2026. Both have a separate 20-year agreement for the purchase of LNG as well.

Venture Global is one of the biggest US LNG developers, and recently filed for an initial public offering. The Financial Times has previously reported the company is planning to raise $3bn to $4bn, which would be the biggest energy listing in more than a decade — and one of the largest in US history.