PGNiG agrees terms for 20-year deal with Sempra’s Port Arthur LNG

Poland’s state-owned gas company PGNiG signed a heads of agreement with Port Arthur LNG, a Sempra LNG & Midstream unit, for the delivery of two million tons of LNG per year. 

Image courtesy of PGNiG

The deal defines the basic terms and conditions of a sales and purchase agreement the two companies are looking to finalize, PGNiG’s statement reads.

This would see the volumes, equaling about 2.7 billion cubic meters of natural gas per year, be delivered from the port Arthur LNG facility being developed in Jefferson County, Texas to PGNiG over a 20-year period.

“The signed agreement paves the way for finalizing a contract that will help PGNiG to develop our LNG portfolio in the near future,” said Piotr Woźniak, CEO and president of PGNiG.

“Starting in 2023, LNG deliveries from the Port Arthur terminal can not only help us to further diversify our import structure but will also help us in strengthening PGNiG’s activities on the international LNG market,” Woźniak said.

Deliveries have the flexibility to allow for further trading by PGNiG on international markets and are contemplated to be supplied on a free-on-board (FOB) basis whereby PGNiG is responsible for transport of the cargoes from Port Arthur LNG, the statement reads.

The Port Arthur LNG liquefaction facility is planned to export approximately 11 mtpa of LNG starting from 2023.

Last week Bechtel was selected by Port Arthur LNG to be the engineering, procurement, construction and commissioning (EPC) contractor.