UKRAINE NEED GAS

BLOOMBERG - Feb 26, 2025 - Ukraine will have to buy between 1 billion and 2 billion cubic meters of gas this year to prepare for next heating season, the nation’s largest private energy company estimates.

“It depends on how fast we recover our gas infrastructure and restore production levels, and what the weather will be,” DTEK Chief Executive Officer Maxim Timchenko said during an interview in London.

Last year, Ukraine received 724 million cubic meters of gas from abroad, according to estimates from ExPro Consulting in Kyiv. About a third of that was later re-exported to western neighbors, which used the nation’s storage sites.

Ukraine boosted gas imports from the European Union this winter after Russian missile attacks damaged facilities. The nation is competing in a tight market where prices remain elevated as Europe will be replenishing depleted stockpiles soon.

DTEK expects to announce a deal within the next two months to import liquefied natural gas. The firm is negotiating with several sellers — primarily based in the US — for a two-year supply contract, Timchenko said on the sidelines of the International Energy Week conference.

The government has also started preparing for next heating season and is considering options such as boosting domestic gas extraction and increasing imports, Prime Minister Denys Shmyhal said earlier this month. The European Commission says it will assist Ukraine in funding purchases.

The damage to DTEK’s gas infrastructure from Russian attacks isn’t “so significant,” Timchenko said. About 90% of its power generation capacity was damaged, but the majority was restored in time for this winter. DTEK invested a total of about €220 million ($231 million) to be ready.

Since Russia’s full-scale invasion three years ago, DTEK has spent about €1.2 billion on repairing its damaged infrastructure and building facilities, among other things.

“We need to invest a lot in restoration,” Timchenko said, adding that at least €150 million is required to address this year’s damage. “Our plan is to double power-generation capacity.”

That plan includes renewable energy, with the company earmarking about €600 million for a wind park and battery storage facilities in the next two years.

The company also invests in Romania, Poland and Croatia, and is interested in southeastern Europe if there are “good opportunities,” Timchenko said.

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