Kino Aski LNG and Naftogaz Sign MoU to Supply Canadian LNG to Europe
Ukraine's state energy company adds another non-binding supply arrangement as Canadian LNG export projects remain without a final investment decision.
Kino Aski LNG and Ukraine's Naftogaz Group signed a memorandum of understanding on Friday (2026-09-11) to explore long-term supply of low-carbon Canadian LNG to European buyers, extending Naftogaz's push to secure alternatives to Russian pipeline gas across multiple geographies and exporters.8
The Kino Aski project is Atikamekw Nation-led, formed through a partnership with Marinvest Energy Canada Inc. It targets a 15 million metric ton per annum export terminal at the Port of Baie-Comeau, Quebec, with majority Indigenous ownership and plans to power the facility with renewable energy. The Energy Mix reported in August 2026 that the project already faces local opposition and that EU demand for supplies tied to timelines stretching well into the 2030s remains uncertain.6,7
Naftogaz has been accumulating non-binding agreements at pace. In late June 2026, it signed two MoUs with Poland's state-backed ORLEN — one covering LNG procurement for Ukraine, another on energy transition initiatives — following ORLEN's delivery of 300 million cubic meters, approximately 10.59 billion cubic feet, of US LNG to Ukraine in the first quarter of 2026. ORLEN had already supplied 600 million cubic meters to Naftogaz under a separate partnership launched in 2025, the company said in a November 2025 statement.4 In July 2026, Louisiana-based Argent LNG, proposing a 25 MMtpa terminal in Lafourche Parish, signed its own exploration agreement with Naftogaz.5
But none of these arrangements has triggered a final investment decision. Naftogaz is spreading optionality across US, Canadian, and European-routed supply chains rather than committing to any single route or counterparty.
Canadian LNG's case to European buyers strengthened earlier this year through a separate deal. In late May 2026, German state-owned SEFE agreed to buy one million tonnes per annum from the Ksi Lisims LNG project in British Columbia — Canada's first long-term LNG supply agreement with a European buyer, Gasworld reported.1,2 Ksi Lisims is backed by Blackstone-funded Western LNG, Rockies LNG Partners, and the Nisga'a Nation, and is targeting an FID before end-2026.3,1 Its electric-driven trains, powered by hydroelectric energy, are projected to reduce lifecycle emissions 94% below the global average.1
Kino Aski is at an earlier stage and faces different geography. Baie-Comeau sits on the St. Lawrence Seaway rather than the Pacific coast, and Quebec's regulatory and infrastructure environment differs from established British Columbia export corridors. The local opposition flagged by The Energy Mix in August 2026 remains unresolved.6
The price arithmetic still favors North American supply. NYMEX Henry Hub front-month settled at $2.83/MMBtu at the 2026-09-12 close, while JKM Asian LNG settled at $24.88/MMBtu. ICE Endex TTF front-month stood at €79.51/MWh at the 2026-09-12 close. At those European levels, Canadian LNG netbacks are viable in principle once liquefaction and Atlantic shipping costs are accounted for. The constraint is infrastructure, not price.
European import appetite, at least, appears real. Poland's Gaz System raised the FSRU 2 regasification project's annual capacity from 4.5 billion cubic meters to 6.1 billion cubic meters after it was oversubscribed, Rigzone reported.4 Receiving terminals are being expanded. Export terminals are not yet built.
The nearest concrete checkpoint is the Ksi Lisims FID, targeted before end-2026. If that decision materializes, it would mark the first committed capital in Canadian LNG exports to Europe and provide a commercial template for projects like Kino Aski. Until then, Friday's (2026-09-11) MoU between Kino Aski and Naftogaz remains exploratory — one more agreement in a queue of agreements waiting for someone to pour steel.8,1