Sempra’s Port Arthur LNG Phase 1 offtake capacity is fully booked after latest deal

US LNG company Sempra Infrastructure has entered into a long-term sale and purchase agreement (SPA) with Polish oil refiner and petrol retailer PKN ORLEN for the supply of LNG from the Port Arthur LNG Phase 1 project under development in Jefferson County, Texas.

Port Arthur LNG facility. Archive; Courtesy of Sempra Infrastructure

Under the SPA, PKN ORLEN, which recently acquired Polish Oil & Gas Company (PGNiG), agreed to purchase approximately 1 million tonnes per annum (mtpa) of LNG from Port Arthur LNG Phase 1 project on a free-on-board basis for 20 years.

With this agreement, the projected LNG offtake capacity for the Phase 1 project is now fully subscribed with 10.5 mtpa under binding long-term agreements, Sempra stated.

“We are excited to partner with PKN ORLEN, Central Europe’s largest energy group, as they continue to look for long-term, diverse supplies of secure energy sources”, said Justin Bird, CEO of Sempra Infrastructure.

“With the long-term off-take capacity for Phase 1 now sold under binding agreements, we expect to reach FID later this quarter and commence construction on the Port Arthur LNG Phase 1 project to help meet the increasing demand for LNG across Europe and the rest of the world.”

Some of Sempra’s other long-term binding agreements include those with RWE, ConocoPhillipsINEOS and ENGIE.

The company is now focused on completing the remaining steps necessary to achieve its goal of making a final investment decision for the Port Arthur LNG Phase 1 project in the first quarter of 2023, with first cargo deliveries expected in 2027.

The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 mtpa of LNG. A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.

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