Ukraine's Naftogaz signs contract for 100 MMm3 of gas from Orlen

Ukraine's Naftogaz has signed a contract for a further 100 MMm³ of LNG deliveries from Poland's Orlen, bringing the total volume it will purchase from the Polish company to 300 MMm³, it said on Thursday.

Ukraine has been forced to ramp up gas withdrawals from storage and increase imports this winter and spring after Russian missile attacks damaged production facilities in the east of the country.

Industry sources said earlier this month that Orlen aims to sell 10 cargoes of LNG to Ukraine this year as Kyiv seeks to fill gas storage sites ahead of winter.

Ukraine has already received two cargoes with 200 MMm³ of LNG and Naftogaz said that the gas would come from the United States via Poland.

The former head of the Ukrainian gas transit operator, Serhiy Makogon, said this month that the country needed to import up to 6.3 Bm³ of gas for the 2025–2026 winter season as reserves have fallen to a record low due to war-related damage to some facilities.

He said Ukraine would need up to $3 B to buy such high volumes of gas.

Makogon noted that Naftogaz had announced the required volume of imports at a lower level of 4.6 Bm³.

The data of Ukraine's gas transmission operator showed that the country would import about 9.6 MMm³ of gas on Thursday versus 10.4 MMm³ on Wednesday. Most of the volume will come from Hungary, the data showed.

Naftogaz said this week it was in talks with the government and international financial institutions to raise €1 B to purchase over 2 Bm³ of gas for the 2025–2026 heating season.

The state-run company has said that €430 MM from the EBRD and Norway would be used to purchase an additional 1 Bm³ of gas.

Ukrainian energy officials have said the country need around 13 Bm³ of gas in storages for the 2025–2026 heating season.

Ukrainian underground gas storage facilities are the largest in Europe and the third largest in the world and can store around 30 Bm³ of gas.

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