Naftogaz and ORLEN Team Up on LNG Supplies, Refining Ukrainian Crude

Naftogaz Group and Polish energy company ORLEN have signed two memoranda aimed at strengthening Ukraine's energy security and diversifying its energy supply routes. The agreements were signed during the Carpathian Eight Summit, with one memorandum providing for the delivery of three liquefied natural gas (LNG) cargoes in the first quarter of 2027.

The additional volumes could help Ukraine meet demand during periods of peak seasonal consumption if needed, according to Naftogaz. The company's acting CEO, Sergii Fedorenko, stated that ORLEN is an 'important strategic partner' for Naftogaz, and that reliable sources of gas supply and diversified delivery routes are crucial amid ongoing Russian attacks on domestic production facilities.

The second memorandum was signed between ORLEN and Ukrnafta, part of the Naftogaz Group, and provides for supplies of petroleum products to the Ukrainian market worth up to $500 million. This arrangement is intended to strengthen the stability of fuel supplies amidst a global oil crisis caused by events in the Middle East.

ORLEN has also expressed interest in expanding its presence in Ukraine and has discussed potentially acquiring a stake in Ukrnafta, with ORLEN's CEO and President, Ireneusz Fąfara, stating that Ukraine is particularly important for their Mažeikiai refinery in Lithuania, which sells nearly 18% of its output on the Ukrainian market.