Unlock the Editor’s Digest at no cost
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.
Ukraine has acquired its first cargo of liquefied pure gasoline from the US, because the war-torn nation joins broader European efforts to completely wean themselves off Russian fossil fuels in preparation for Donald Trump’s return to the White Home.
The nation’s largest non-public vitality firm, DTEK, acquired the cargo through the Mediterranean, with a vessel arriving at a Greek LNG terminal on Friday.
“Cargoes like this aren’t solely offering the area with a versatile and safe supply of energy, however are additional eroding Russia’s affect over our vitality system,” stated Maxim Timchenko, chief government of DTEK.
Europe sources about 40 per cent of its LNG imports from the US, however none have ever been immediately bought by Ukraine earlier than. The cargo comes simply days earlier than the expiry of a five-year deal permitting the transit of Russian pipeline gasoline by way of Ukraine and weeks forward of Trump’s inauguration as US president.
The pipeline by way of Ukraine nonetheless accounts for about 5 per cent of the EU’s gasoline imports, even because the bloc has shifted to extra LNG imports following Russia’s full-scale invasion in 2022. Trump, who has solid doubt about his administration persevering with army assist for Ukraine, has threatened to impose tariffs on European nations except they purchase extra US oil and gasoline.
DTEK stated it had bought your complete LNG cargo, which was carrying about 100mn cubic metres value of pure gasoline. Information from Greece’s Nationwide Pure Fuel System Operator reveals that DTEK will maintain a couple of tenth of the gasoline, whereas the remainder will probably be resold to Greek corporations.
“It’s vital that one in all Ukraine’s main vitality corporations is receiving US LNG on the eve of a doubtlessly huge gasoline market change,” stated Tom Marzec-Manser, an impartial gasoline analyst.
“Ukraine doesn’t purchase any gasoline itself from Russia, but when Russia is unable to produce central European patrons by way of Ukraine from January 1, then these further volumes will probably be essential for safety in the entire of the area,” he added.
The arrival of the LNG additionally coincides with Russia stepping up assaults on Ukraine’s vitality system. The latest attack came on Christmas Day, which left greater than half 1,000,000 folks with out heating, water and electrical energy.
DTEK signed the deal for the cargo of LNG with US firm Enterprise International in June. Underneath the phrases, DTEK’s purchases will proceed by way of the top of 2026. Each have a separate 20-year settlement for the acquisition of LNG as nicely.
Enterprise International is likely one of the largest US LNG builders, and just lately filed for an preliminary public providing. The Monetary Occasions has beforehand reported the corporate is planning to lift $3bn to $4bn, which might be the most important vitality itemizing in additional than a decade — and one of many largest in US historical past.
