Argent LNG, Naftogaz plan multi-path LNG supply to Europe
A new US-Ukrainian supply pact aims to replace spot cargoes with a structured, long-term LNG pipeline linking Louisiana export capacity directly to Central and Eastern European storage networks.
Argent LNG and Ukraine’s Naftogaz Group have signed a memorandum of understanding to establish a long-term LNG sale and purchase framework. The non-binding agreement targets secure supply for Ukraine and Central, Eastern, and Southern European markets through multiple delivery pathways.
The proposed structure integrates several layers of the gas value chain. Supply would originate free-on-board at Argent’s planned 25 million tonnes per annum (mtpa) export terminal at Louisiana’s Port Fourchon. The gas would then move via delivered ex-ship arrangements into European regasification infrastructure. Finally, Naftogaz would utilize its underground storage network to distribute the fuel into Ukraine and neighboring regional markets.
For investors and market participants, the significance of this pact lies in its departure from spot-market reliance. Linking a large-scale US export facility directly to established European subterranean storage creates a predictable, long-term physical chain. This structured approach reduces routing bottlenecks and provides portfolio stability for both the American developer and the state-backed European buyer.
The deal also carries notable financing implications. The two companies plan to engage with US government financial institutions and European energy security officials. This alignment with allied energy policy objectives could prove critical for securing the capital required to bring the 25 mtpa Louisiana terminal to fruition, particularly as Washington continues to prioritize supply diversification for its European partners.
“Energy security and national security are the same thing. Every cubic meter of gas for Ukraine strengthens its energy security, and its ability to make free decisions,” said Jonathan Bass, Chairman and CEO of Argent LNG. He emphasized that the goal is to establish permanent infrastructure ties rather than one-off cargo sales. “This MoU is the start of building that with Naftogaz, and we intend to move quickly and seriously toward a definitive agreement.”
Sergii Koretskyi, CEO of Naftogaz, highlighted the strategic necessity of the arrangement. “The signing of this memorandum of understanding with Argent LNG marks an important step toward building a long-term partnership with the American LNG industry,” he stated. He added that securing diversified natural gas supplies is a central pillar of Naftogaz’s strategy to fortify the country’s energy security against single-source dependencies.
