ORLEN signs new LNG supply deal with Ukraine’s Naftogaz

The aim of this agreement is for Ukraine to create a more diversified supply of the alternative fuel.

ORLEN and Naftogaz have signed a memorandum of cooperation in the liquefied natural gas (LNG) sector, allowing Ukraine to create a more diversified supply of this alternative fuel.

As part of the cooperation memorandum, both companies also signed a gas supply contract for approximately 100 million cubic metres of gas. The fuel will be sourced from an LNG cargo to be delivered to the terminal in Klaipėda, Lithuania. 

“The letter of intent between ORLEN and Naftogaz forms the foundation for long-term and mutually beneficial cooperation in the crucial area of energy commodities supply. Our relationship will be based on commercial terms, but securing an additional source of gas is vital for Ukraine also from the point of view of its security,” said Robert Soszyński, Vice President of ORLEN Management Board for Operations.

The gas will then be transmitted via the GIPL pipeline connecting Lithuania and Poland, and further through Polish territory to the interconnector on the Ukrainian border in Drozdowicze, where it will be received by Naftogaz.

“Ukraine has a robust gas transportation system and Europe’s largest underground storage facilities, offering unique opportunities for LNG market expansion. Partnering with ORLEN strengthens energy security, diversifies supply routes, and accelerates Ukraine’s integration into the European gas market,” added Roman Chumak, Chairman of the Board of Naftogaz.