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Venture Global, DTEK sign LNG supply deal for Ukraine, Eastern Europe
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Venture Global, DTEK sign LNG supply deal for Ukraine, Eastern Europe
Jun 13, 2024 6:39 AM

June 13 (Reuters) - U.S.-based liquefied natural gas

developer Venture Global and the commercial arm of Ukraine's

largest private energy company DTEK Group on Thursday announced

an agreement to supply Ukraine and Eastern Europe.

It is Ukraine's first major deal with a U.S. exporter for

LNG supply.

Under the agreement, DTEK's trading unit D. Trading will buy

cargoes from Venture Global's Plaquemines LNG facility in

Louisiana from later this year until the end of 2026.

D. Trading will also purchase up to 2 million tonnes per

annum of LNG from Venture Global's third facility, CP2 LNG, for

20 years.

Currently, Ukraine has no regasification terminals for LNG

and most gas volumes come to Ukraine from Slovakia. DTEK,

however has contract regasification capacity in terminals in

Europe and could ship this gas to Ukraine. There's also a

pipeline link via Poland, which has an LNG terminal.

DTEK was not immediately available for comment.

Ukraine has said it will not extend a five-year deal with

Russia's Gazprom on the transit of Russian pipeline gas to

Europe when it expires at the end of the year and has been

exploring options for alternative supply.

Venture Global LNG's Calcasieu Pass plant has been at the

centre of a long-running dispute involving energy companies

including BP, Shell and others over access to

LNG from the plant.

On Monday, a U.S. regulator ordered Venture Global LNG to

provide customers with documents about the mechanical problems

and startup of a Louisiana plant.

The disputes have not stopped it from signing LNG supply

deals, including a 20-year deal signed in June last year to

provide Germany's Securing Energy for Europe GmbH (SEFE) with

2.25 million tonnes per annum of LNG.

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