Media: Ukraine to import up to two billion cubic meters of gas for upcoming heating season

In a recent article, Bloomberg highlights that Ukraine is set to import between 1 billion and 2 billion cubic meters of gas this year to ensure a steady supply for the upcoming heating season.

“We need to recover our gas infrastructure and restore production levels, and the weather will also play a role,” said Maxim Timchenko, CEO of DTEK, the country’s largest private energy company, in an interview in London.

Last year, Ukraine imported 724 million cubic meters of gas, with around one-third of it re-exported to neighbouring western countries, which took advantage of Ukraine's storage facilities, according to estimates from ExPro Consulting in Kyiv. This winter, Ukraine ramped up gas imports from the European Union after Russian missile strikes heavily damaged critical infrastructure.

The country is operating in a tight market, as prices remain high while Europe looks to replenish its stockpiles. DTEK is working to finalize a deal within the next two months for the import of liquefied natural gas (LNG). The company is in discussions with several US-based suppliers for a two-year supply agreement, Timchenko added during the International Energy Week conference. 

In response to the heating season’s challenges, the Ukrainian government is exploring options such as increasing domestic gas extraction and boosting imports. Prime Minister Denys Shmyhal confirmed these preparations earlier this month, and the European Commission has pledged financial assistance to help fund these purchases. 

Despite substantial damage from Russian attacks, DTEK’s gas infrastructure was not seriously impacted, according to Timchenko. Although 90 per cent of the company’s power generation capacity was damaged, the majority of it has been restored in time for the current winter. DTEK invested approximately 220 million euros ($231 million) to ensure readiness.

Since Russia’s full-scale invasion three years ago, DTEK has invested around 1.2 billion euros into infrastructure repairs and facility construction.

“We need to invest a lot in restoration,” Timchenko said, adding that at least 150 million euros is needed to address this year’s damage. “Our plan is to double our power-generation capacity.” The company is also focusing on renewable energy, with plans to invest around 600 million euros in a wind farm and battery storage facilities over the next two years. In addition to its domestic efforts, DTEK is making investments in Romania, Poland, and Croatia and is eyeing opportunities in southeastern Europe, provided they offer “good prospects,” Timchenko stated.

By Naila Huseynova