Photo: Illustration; Courtesy of Sempra

PGNiG to buy 3 MTPA of LNG from Sempra

Sempra Infrastructure, a subsidiary of U.S. LNG infrastructure company Sempra, and the Polish Oil & Gas Company (PGNiG) have entered into a deal for the purchase of three MTPA of LNG.

PGNiG to buy 3 MTPA of LNG from Sempra
Illustration; Courtesy of Sempra

On 16 May, Sempra Infrastructure said it entered into a heads of agreement (HOA) with PGNiG for the purchase of approximately three million tonnes per annum (MTPA) of LNG. The cargo will be delivered free-on-board from Sempra Infrastructure’s portfolio of LNG projects in North America.

The HOA contemplates definitive 20-year sale and purchase deals for two MTPA from the Cameron LNG Phase 2 project under development in Louisiana, and one MTPA from the Port Arthur LNG project under development in Texas.

“Today’s agreement underscores our commitment to help 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.”

“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.

The HOA also provides PGNiG the opportunity in 2022 to reallocate volumes from the Cameron LNG Phase 2 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 GHG emissions across the LNG value chain.

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Sempra Infrastructure is developing the Cameron LNG Phase 2 project, which will include a single LNG train with a maximum production capacity of 6.75 MTPA of LNG as well as debottlenecking of the existing three LNG trains at the facility in Hackberry, Louisiana. Last month, Sempra Infrastructure signed an HOA with the Cameron LNG partners for the development of the Cameron LNG Phase 2 project.

In addition, Sempra Infrastructure is also developing the proposed Port Arthur LNG project, an approximately 13.5 MTPA, fully permitted facility on a site in Jefferson County, Texas.

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 a number of risks and uncertainties. These include 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.