PGNiG Pens Agreement With Sempra For 3Mtpa Of LNG

PGNiG Pens Agreement With Sempra For 3Mtpa Of LNG
Sempra and PGNiG have entered into heads of agreement for the purchase of approximately 3 Mtpa of LNG delivered on a free-on-board basis.

Sempra subsidiary Sempra Infrastructure and the Polish oil and gas company PGNiG have entered into heads of agreement for the purchase of approximately 3 million tons per annum (Mtpa) of LNG delivered free-on-board from Sempra Infrastructure's portfolio of LNG projects in North America.

The referenced agreement contemplates the negotiation and finalization of definitive 20-year LNG sale-and-purchase agreements for 2 Mtpa from the Cameron LNG Phase 2 project under development in Louisiana, and 1 Mtpa from the Port Arthur LNG project under development in Texas.

The deal also provides PGNiG the opportunity in 2022 to reallocate volumes from the Cameron LNG Phase 2 project to the Port Arthur LNG project.

Additionally, Sempra Infrastructure and PGNiG expect to continue working toward a framework for the reduction, mitigation, and reporting of greenhouse gas emissions across the LNG value chain.  

"Today's agreement underscores our commitment to helping provide greater energy security to Poland and our global partners through long-term LNG sales," said Dan Brouillette, president of Sempra Infrastructure. "Our relationship with PGNiG is core to this commitment, and we are excited to continue working closely with them to advance more reliable, secure, and increasingly clean energy solutions."

"The agreement signed today paves the way for negotiations of detailed terms that would provide PGNiG with LNG from a reliable and highly valued infrastructure partner. Here in Poland, LNG is already one of the cornerstones of our diversified strategy to enhance Polish energy security, as well as to strengthen the commercial potential of the PGNiG Group. We are determined to further expand our operations in this direction and are therefore taking steps to secure access to adequate natural gas volumes in the future," said Iwona Waksmundzka-Olejniczak, PGNiG president.   

Sempra is developing the Cameron LNG Phase 2 project, which is expected to include a single LNG train with a maximum production capacity of approximately 6.75 Mtpa of LNG as well as debottlenecking of the existing three LNG trains at the facility in Hackberry, Louisiana.

Last month, Sempra signed heads of agreement with the Cameron LNG partners for the development of the Cameron LNG Phase 2 project. The company is also developing the proposed Port Arthur LNG project, an approximately 13.5 Mtpa, fully permitted facility on a 3,000-acre site in Jefferson County, Texas.

It is worth noting that the HOA is a preliminary, non-binding arrangement, and the development of the Cameron LNG Phase 2 and Port Arthur LNG projects remains subject to several risks and uncertainties, including reaching definitive agreements, securing all necessary permits, signing engineering and construction contracts, obtaining financing and incentives, and reaching a final investment decision for each project.

To contact the author, email bojan.lepic@rigzone.com


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