Ukraine contracts 1.5bn cubic metres of gas

Ukraine has contracted 1.5 billion cubic metres of gas so far into 2025.

Source: Ukraine's Prime Minister Denys Shmyhal during a government meeting

Details: In addition, Naftogaz, Ukraine's largest national oil and gas company, has agreed to purchase another 300 million cubic metres of liquefied natural gas (LNG) from the Polish company Orlen.

Shmyhal said that on 29 April the government adopted a decision to accelerate domestic gas production.

Private companies in the oil and gas extraction sector will see a significant simplification of procedures for setting up energy storage facilities and constructing infrastructure needed to connect to Ukraine’s gas transmission system.

Shmyhal reiterated that Russian troops launched a series of large-scale attacks on Ukraine’s gas production infrastructure during this winter, resulting in losses of nearly 50% of total output.

"We are working to compensate for these losses, including through imports," Shmyhal stated.

Background:

• Ukraine has secured €270 million from the European Bank for Reconstruction and Development under state guarantees for gas purchases, accompanied by a €140 million grant from the Norwegian government.
• Due to Russian attacks on gas infrastructure and the resulting decline in production, Ukraine will significantly increase gas imports in 2025.
• The Naftogaz Group has already begun preparations for the 2025/2026 heating season by purchasing gas and modernising power generation facilities.

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