PGNiG signs SPA for Port Arthur LNG

Thursday, 10 January 2019

Sempra Energy subsidiary, Port Arthur LNG and the Polish Oil & Gas Company (PGNiG) have signed a 20-year sale and purchase agreement (SPA) for LNG from the Port Arthur LNG liquefaction export facility under development in Jefferson County, Texas.

"This agreement marks an important step toward Poland's energy independence and security," said US Secretary of Energy, Rick Perry. "As demonstrated with the launch of the Strategic Dialogue on Energy in Poland in November, the Trump Administration remains committed to increasing energy diversity, advancing energy security, strengthening national security, and creating a future of prosperity and opportunity in Poland and throughout the region."

"This agreement with PGNiG represents an important expansion of our portfolio of contracts for LNG exports and major step forward in the development of our Port Arthur LNG project," said Jeffrey Martin, Chairman and CEO of Sempra Energy. "Last month (November), we began the commissioning phase of our Cameron LNG liquefaction-export facility in Louisiana. This agreement, along with the great progress on Cameron LNG, continue to validate our growth strategy as we advance our vision to become North America's premier energy infrastructure company."

"Our activities show that we consistently implement our strategy," said Piotr Woźniak, president of PGNiG’s management board. "Another long-term contract not only allows us to develop LNG portfolio with a view to delivering to Poland, but it gives us, in the near future, the possibility of trading in LNG purchased on a global scale. I am glad that Sempra Energy is among our American partners. I am convinced that we will have good long-term cooperation."

While financial terms were not disclosed, the agreement is for the purchase of 2 mill tonnes per annum, or about 2.7 bill cu m per year (after regasification) – enough natural gas to meet about 15% of Poland's daily needs.

This agreement is subject to certain conditions, including Port Arthur LNG making a final investment decision (FID).

In addition, Sempra Energy signed a Memorandum of Understanding (MOU) with Korea Gas Corp last year for potential participation in the Port Arthur LNG project.

The Port Arthur liquefaction-export facility was designed to include two natural gas liquefaction trains capable of processing around 11 mill tonnes of LNG; up to three LNG storage tanks; two marine berths, and associated facilities.