America’s Frontera Resources Corporation along with Naftogaz will build a liquefied natural (LNG) gas terminal in Ukraine, according to Prime Minister Arseny Yatsenyuk. The announcement comes as Kiev is actively looking for alternatives to Russian gas.
“Naftogaz of Ukraine signed a memorandum with Frontera. The American company will start the construction of a LNG-terminal and supply natural gas to Ukraine through it", Yatsenyuk told Ukraine’s Parliament on Friday, according to RIA Novosti.
Frontera will work on the possibility of bringing LNG to Ukraine from its ongoing gas exploration projects in Georgia, the company said in a statement published on Wednesday. Frontera said its combined prospective resources stood at 365 billion cubic meters of gas, with 266 billion cubic meters of recoverable prospective natural gas resources.
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This week Naftogaz and Frontera signed a memorandum of understanding for upstream and LNG cooperation in Washington, during the first US-Ukraine Business Forum.
Ukraine is seeking alternative gas sources after it stopped buying Russian gas on July 1. On Thursday, Kiev said Western financial institutions may provide the country with $1 billion to purchase natural gas for the winter months, as the country does not currently possess enough supplies.
Kiev also expressed its interest in purchasing gas from Kazakhstan and Turkmenistan, while it has asked the European Commission to support the process.