Natural gas supply agreement for winter 2025-2026

DEPA Commercial's Letter of Intent with Naftogaz to supply natural gas to Ukraine for the winter of 2025-2026 represents a crucial step in securing Ukraine's energy needs during a critical period. The agreement leverages LNG volumes originating from the United States and transported via the "Route 1" gas transmission system, involving a network of TSOs across Greece, Bulgaria, Romania, Moldova, and Ukraine. This diversified supply route aims to bolster Ukraine's energy security and reduce reliance on potentially unstable sources, particularly during the high-demand winter months. The deal's significance lies in its geopolitical implications and the collaborative effort of multiple European gas transmission operators (DESFA, Bulgartransgaz, Transgaz, VestMoldTransgaz, and GTSOU) to facilitate the supply. While the value and specific volumes remain undisclosed, the involvement of Naftogaz, Ukraine's national oil and gas company, and DEPA Commercial, suggests a substantial commitment to ensuring energy availability. The reliance on US LNG further underscores the evolving dynamics of the European gas market and the increasing role of LNG imports in meeting regional demand. This agreement highlights the ongoing efforts to diversify energy sources and strengthen energy security in Eastern Europe.