Unlock the Editor’s Digest free of charge
Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.
Ukraine has acquired its first cargo of liquefied pure fuel 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 personal power firm, DTEK, acquired the cargo by way of 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 power system,” stated Maxim Timchenko, chief govt 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 fuel 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 fuel imports, even because the bloc has shifted to extra LNG imports following Russia’s full-scale invasion in 2022. Trump, who has forged doubt about his administration persevering with navy help for Ukraine, has threatened to impose tariffs on European nations except they purchase extra US oil and fuel.
DTEK stated it had bought the whole LNG cargo, which was carrying about 100mn cubic metres value of pure fuel. Knowledge from Greece’s Nationwide Pure Gasoline System Operator exhibits that DTEK will hold a few tenth of the fuel, whereas the remainder might be resold to Greek companies.
“It’s important that certainly one of Ukraine’s main power firms is receiving US LNG on the eve of a probably huge fuel market change,” stated Tom Marzec-Manser, an impartial fuel analyst.
“Ukraine doesn’t purchase any fuel itself from Russia, but when Russia is unable to produce central European patrons by way of Ukraine from January 1, then these further volumes might 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 power 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. Below the phrases, DTEK’s purchases will proceed by way of the tip of 2026. Each have a separate 20-year settlement for the acquisition of LNG as properly.
Enterprise International is likely one of the largest US LNG builders, and not too long ago filed for an preliminary public providing. The Monetary Instances has beforehand reported the corporate is planning to boost $3bn to $4bn, which might be the largest power itemizing in additional than a decade — and one of many largest in US historical past.
