Ukraine’s energy giant DTEK seals first US LNG deal Shifting Power Balance in Europe

Ukraine’s largest private energy company, DTEK, is advancing its efforts to reduce its reliance on Russian natural gas by increasing its imports of liquefied natural gas (LNG) from the United States.

The company has also moved forward with plans to secure a commercial agreement with a Virginia-based firm, aiming to help replace Russia’s disrupted gas supply chain to Europe, Caliber.Az reports via US media.

In an interview with The Post, DTEK CEO Maxim Timchenko explained that the rising cost of Russian gas has prompted the shift towards alternative energy supplies, particularly from the US. "Russian gas cannot be cheap — and eventually, it will be very high-priced," Timchenko said. "The most obvious solution and practical solution is to replace Russian gas by supply from the United States, and we always wanted to be part of this, part of this global market."

The move could potentially align with US President Donald Trump’s priorities to rejuvenate the American oil industry while pushing for an end to the ongoing war in Ukraine. As part of its efforts, DTEK has been in discussions with Venture Global, a US-based LNG exporter, to secure up to six shipments of LNG this year. The first shipment from Venture Global arrived from Louisiana in December 2024, reaching European markets through a Greek terminal and ultimately contributing to the European gas network.

Despite the devastating impact of the ongoing war, which destroyed up to 90% of DTEK’s power generation capacity last year, the company has seen a shift in the business environment, particularly following a ceasefire agreement mediated by the United States. Timchenko expressed his gratitude for the relative calm since the ceasefire began, stating, “It’s the first time for three years that we can sleep.”

DTEK, which currently distributes about 40% of Ukraine’s electricity, is also investing heavily in modernising the country’s energy grid, with plans for a 10-year project worth up to €7 billion. This initiative includes the development of battery storage projects in Poland, which will enhance the resilience of Ukraine's power grid, especially after its integration into the European grid.

The company’s efforts are part of a broader strategy to strengthen Ukraine’s energy security and to assert the country's growing role in the European energy landscape. Ukraine holds the second-largest natural gas reserves in Europe and is home to the continent's largest gas storage system and nuclear energy plant.

Timchenko also sees potential for greater international collaboration, highlighting ongoing efforts to connect Ukraine’s energy infrastructure with neighbouring countries such as Poland, Hungary, and Lithuania.

While these commercial efforts are ongoing, DTEK remains committed to helping secure Ukraine’s energy future through strategic investments. Timchenko further emphasised the importance of US investments in the region, acknowledging that while traditional defense guarantees remain essential, economic investments play a significant role in ensuring the country’s broader security.

As Ukraine continues to navigate the challenges of the war, DTEK’s strategic shift towards US LNG imports and enhanced energy partnerships signals a significant step toward reducing reliance on Russian energy supplies and strengthening the nation's energy independence.

By Aghakazim Guliyev