Naftogaz of Ukraine has signed an agreement with the Canadian energy developer Symbio Infrastructure for the purchase of liquefied natural gas (LNG) and green liquid H2 from Quebec, Canada.
"This agreement is an important step for Ukraine's transition to diversified energy supplies from around the world, which we began in late 2014, when we stopped direct imports of Russian natural gas. Since then, we have strengthened our energy independence and are an active player in the European energy market. We believe that the opportunity to obtain a reliable and long-term supply of responsibly produced energy resources from partners such as Canada from 2027 and from Symbio facilities will be crucial for our energy security and future economic development, "said Yuriy Vitrenko. Chairman of the Board of Naftogaz of Ukraine.
Jim Ilyich, founder and head of Symbio Infrastructure added that Symbio will provide Ukraine with competitive energy through innovative renewable energy infrastructure and significantly reduce global greenhouse gas emissions by displacing higher-emission resources used in Europe, fuel oil, as well as natural and liquefied gas with high carbon content.
On June 5, in Washington, DC, the parties signed a MoU. They agreed that LNG and liquid H2 would be delivered to an import terminal in a European transit country agreed by the parties. Symbio will supply Europe with the lowest carbon LNG thanks to Canada's strict standards for natural gas production and the innovative use of renewable hydropower to power its facilities.
This memorandum contributes to the Canadian government's intentions. Earlier, Canadian officials publicly stated their readiness to help Europe overcome the energy crisis and diversify LNG supplies by rapidly obtaining appropriate permits to export natural gas from eastern Canada to Europe.
Naftogaz is the largest state-owned company in Ukraine, carrying out a full cycle of exploration and development of fields, production and exploration drilling, storage of oil and gas, refining and distribution of petroleum products, and supply of natural and liquefied gas to consumers.
Naftogaz is aware of its responsibility to future generations, so one of its strategic goals is to increase low-carbon assets for the energy transformation of Naftogaz and the decarbonization of the Ukrainian economy.
Symbio, through its subsidiary GNL Québec, is developing Énergie Saguenay, the world's first large-scale carbon-neutral LNG export facility in Quebec, Canada. The industry benchmark will liquefy and export 10.5 MMt or 15 Bm3y of pure LNG to Europe (approximately 17% of Germany's annual gas consumption or about half of Ukraine's gas consumption) at competitive prices. This is possible due to the short distance to Europe and the cost-effectiveness achieved by Canada's cold climate.
Symbio will help diversify energy supplies and facilitate the energy transition in Europe. To this end, the company will build an efficient energy infrastructure, produce LNG and plans to become one of the world's largest exporters of green H2. Given the time to obtain regulatory approvals, Symbio projects are scheduled to begin in 2027.
