SEATTLE (Oil Monster): U.S.-based Argent LNG has signed a memorandum of understanding (MoU) with Naftogaz Group to supply liquefied natural gas (LNG) from the United States to Ukraine and other European markets. This is considered another major step in Ukraine's efforts to diversify its energy imports.
The agreement outlines plans for future LNG purchases from Argent's proposed export terminal at Port Fourchon, Louisiana. Incidentally, Argent LNG is developing a large-scale export terminal project with an annual capacity of 25 million tonnes. The planned terminal will feature 12 modular liquefaction trains, making it one of the world's largest LNG export facilities once completed.
The new agreement with Argent LNG is expected to further support the country's long-term energy diversification strategy. It must be noted that Ukraine has been gradually reducing its dependence on Russian gas since 2015.
Company CEO Jonathan Bass said the partnership is intended to establish a long-term commercial relationship. Both companies aim to move toward a definitive supply agreement in the near future.
Naftogaz described the MoU as an important part of its strategy to strengthen Ukraine's energy security by expanding access to global LNG supplies. The country continues to rely on European import infrastructure.
Earlier this year, Naftogaz secured long-term regasification capacity at Lithuania's Klaipėda LNG terminal and also announced plans to receive U.S. LNG through Germany's Baltic Sea import facilities.
