ORLEN, Naftogaz Plan Three LNG Cargoes for Ukraine

Poland’s ORLEN and Ukraine’s Naftogaz Group have signed agreements covering three LNG cargoes for the first quarter of 2027 and petroleum-product supplies worth up to $500 million, strengthening Ukraine’s energy supply options ahead of another difficult heating season.

MONTREAL (Oil Monster): Poland’s ORLEN and Ukraine’s Naftogaz Group have expanded their strategic energy partnership through two memoranda covering LNG deliveries, petroleum products and potential crude-oil processing in Central Europe.

The agreements were signed during the Carpathian Eight Summit and are intended to strengthen Ukraine’s energy security and diversify supply routes.

Three LNG Cargoes Planned for Early 2027

One of the agreements covers the potential supply of three liquefied natural gas cargoes in the first quarter of 2027.

The exact amount of gas involved has not been disclosed.

Naftogaz said the additional LNG volumes, if required, would help Ukraine meet demand during the peak winter consumption period.

Ukraine is preparing for what could be another difficult heating season as Russian attacks continue to affect domestic energy infrastructure and natural gas production.

ORLEN and Naftogaz Have Existing U.S. LNG Partnership

Naftogaz has already purchased U.S.-origin LNG through ORLEN under previous agreements.

ORLEN has used its LNG sourcing portfolio, reserved regasification capacity and regional pipeline connections to supply gas to Ukraine through European infrastructure.

The new memorandum would extend that cooperation into the first quarter of 2027.

ALSO READ:

Argent LNG Signs Supply Deal With Naftogaz to Deliver U.S. LNG to Ukraine and Europe

Naftogaz Secures Long-Term LNG Terminal Capacity in Lithuania

Fuel Agreement Covers Up to $500 Million

A second memorandum between ORLEN and Ukrnafta, a Naftogaz Group company, provides for petroleum-product supplies to the Ukrainian market worth up to $500 million.

Naftogaz said the arrangement is intended to strengthen fuel-supply stability amid elevated global oil and refined-product prices linked to disruptions in the Middle East.

Retail motor-fuel prices in Ukraine have risen sharply in September, while diesel prices have approached the psychologically important level of 100 hryvnias per litre.

Ukraine Relies on Imported Motor Fuel

Ukraine is fully dependent on imported motor fuel after Russian attacks destroyed the country’s operating oil-refining capacity.

Despite the loss of domestic refining infrastructure, Ukraine continues to produce crude oil.

Ukrnafta remains the country’s largest oil producer, creating an opportunity to process Ukrainian crude outside the country.

Ukrainian Crude Could Be Refined in Central Europe

The new cooperation agreement allows ORLEN and Ukrnafta to examine the supply of Ukrainian crude oil to refineries in Central Europe for processing.

The arrangement could provide Ukraine with another route for converting domestically produced crude into finished fuels while domestic refining capacity remains unavailable.

Ukraine no longer publishes current crude-production figures. Before Russia’s full-scale invasion in 2022, the country produced approximately 1.5 million metric tons of crude oil and gas condensate in 2021.

Druzhba Pipeline Remains Important to Regional Oil Flows

Ukraine operates the southern branch of the Soviet-era Druzhba pipeline, which transports crude toward refineries in Hungary and Slovakia.

The route has also been used to move Ukrainian crude into Eastern Europe.

In January 2026, a Russian drone attack damaged equipment on the pipeline near Brody in western Ukraine, interrupting oil flows for several months.

Hungary and Slovakia later criticized the length of the outage and accused Kyiv of delaying restoration work, an allegation Ukraine denied.

Pipeline operations resumed in April.

Partnership Expands Ukraine’s Energy Supply Options

The agreements deepen an existing relationship between ORLEN and Naftogaz covering LNG, petroleum products and regional energy logistics.

For Ukraine, the cooperation provides additional options for securing gas during periods of peak seasonal demand, maintaining motor-fuel availability and processing domestically produced crude outside the country.

For ORLEN, the agreements expand its role as an energy supplier across Central and Eastern Europe.

Explore More on OilMonster

• Latest Energy News
• Argent LNG and Naftogaz Supply Agreement
• Naftogaz LNG Terminal Capacity in Lithuania
• Global Crude Oil Prices

Courtesy: www.reuters.com