"Naftogaz" and Orlen agree on new LNG and fuel supplies worth $500 million

Naftogaz Group and Poland's Orlen have agreed on new supplies of liquefied natural gas and petroleum products to Ukraine. The companies signed the respective memorandums during the Carpathian Eight summit.

The first document provides for the supply of three LNG cargoes in the first quarter of 2027. Naftogaz explains that the additional resource will be used during peak seasonal gas consumption if necessary.

The specific volume of the three cargoes and their cost are not currently disclosed by the company. Naftogaz emphasizes that import diversification has become particularly important due to constant Russian attacks on Ukrainian gas production facilities.

The second memorandum with Orlen was signed by Ukrnafta, which is part of the Naftogaz Group. The document provides for the supply of petroleum products to the Ukrainian market worth up to $500 million.

The companies view these supplies as an additional tool for stabilizing the Ukrainian fuel market amid high risks to the global oil market and supplies due to the escalation of the situation in the Middle East.

Cooperation will not be limited to imports. The parties also plan to explore the possibility of supplying Ukrainian oil to refineries in Central Europe. Thus, Ukrnafta could potentially gain an additional external sales channel for its own raw materials.

Another area of the memorandum is the possibility of transferring used fuel trucks from Orlen to Ukrnafta. They are planned to be used for transporting petroleum products and strengthening the resilience of fuel logistics within Ukraine.

Naftogaz calls ORLEN a strategic partner. The Polish company, for its part, views cooperation with Ukraine as part of a broader policy of diversifying energy supplies and increasing the resilience of energy systems in Central and Eastern Europe.

The signed documents are of a framework nature: individual commercial parameters of future supplies, including the price and exact volumes of LNG, are not specified in the announcement.

Based on materials from: Naftogaz of Ukraine