Poland’s PGNiG inks deal with Sempra to buy US LNG

Poland’s dominant gas firm and LNG importer, PGNiG, is looking to buy 3 million tonnes per year of LNG from Sempra Infrastructure’s two liquefaction and export plants in the US.

In that regard, the two firms signed a heads of agreement for FOB volumes, according to a statement by Sempra Infrastructure, a unit of US LNG player Sempra, on Monday.

The HOA 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 firm said.

Also, the HOA 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, it said.

Cameron expansion FID next year, Port Arthur talks

In July last year, the two firms signed a memorandum of understanding for about 2 Mtpa of LNG supplies after the duo terminated the sales and purchase agreement signed in 2018 that provided for the same amount of supply from Sempra’s Port Arthur project.

Sempra’s Port Arthur LNG project would have a capacity of 13 Mtpa. Sempra recently said that it has seen a “significant renewed interest” in the development and was advancing commercial talks with a “number of partners and key offtakers”.

Sempra also said that it expects to take a final investment decision to expand its Cameron LNG export plant in Louisiana in 2023.

Last month, Sempra Infrastructure entered into a heads of agreement with its partners in Cameron LNG. The firms include affiliates of TotalEnergies, Mitsui & Co. and Japan LNG Investment, a company jointly owned by Mitsubishi Corporation and NYK.

Moreover, Cameron LNG awarded two front-end engineering design (FEED) contracts to Bechtel and a joint venture between JGC America and Zachry Industrial.

Sempra holds 50.2 percent of Cameron LNG, the operator of the existing three-train 12 mtpa liquefaction facility.

The Cameron LNG Phase 2 export project includes building the fourth train with a capacity of about 6.75 mtpa.

Gdansk FSRU

PGNiG is heavily investing in LNG and it already has supply deals with US players Venture Global LNG and Cheniere, as well as Qatargas.

The company is in charge of all the supplies coming to Poland’s only LNG terminal in Swinoujscie with a regasification capacity of 6.2 bcm per year.

Thanks to further investments, the capacity will increase to 8.3 bcm of gas per year in 2024 while PGNiG has booked all of these volumes.

Besides this facility, PGNiG also showed interest in Gaz-System’s planned FSRU-based LNG terminal in Gdansk Bay with a capacity of about 6 bcm per year.

PGNiG said in a separate statement on Monday, announcing the deal with Sempra, that the new LNG volumes would come to Poland, among others, via the planned Gdansk FSRU.

The Polish firm expects these 3 Mtpa supplies to start in 2027, subject to signing the binding deal.

Most Popular

Excelerate buys GasLog LNG carrier

US FSRU player Excelerate Energy has purchased a 2007-built steam liquefied natural gas (LNG) carrier from GasLog Partners, a part of Greek LNG shipping firm GasLog, according to brokers.

NextDecade, Bechtel agree $9 billion EPC deals for two Rio Grande LNG trains

US LNG firm NextDecade and compatriot Bechtel have finalized EPC contracts worth $9.09 billion for the construction of the fourth and fifth trains and related infrastructure at the Rio Grande LNG facility in Texas.

Atlantic LNG shipping rates jump to $49,750 per day

Atlantic spot LNG shipping rates rose to $49,750 per day this week, while European prices also jumped compared to the previous week.

More News Like This

Poland’s Gaz-System gets loan for Gdansk FSRU project

Poland’s state-owned LNG terminal operator Gaz-System has received a loan from state development bank BGK for the onshore part of the FSRU-based LNG import project in Gdansk Bay.

Japan’s Jera seals US LNG supply deals

Japan's power firm and LNG trader Jera has signed 20-year agreements to buy up to 5.5 million tonnes per year of LNG from the United States. The deals include an SPA with Commonwealth LNG and the previously announced SPA with NextDecade, as well as heads of agreements with Sempra Infrastructure and Cheniere.

Sempra advances Port Arthur LNG construction

US LNG exporter Sempra and compatriot Bechtel continue to make progress with construction work on the first phase of the Port Arthur LNG export terminal in Texas.

Sempra gets non-FTA approval for Port Arthur LNG expansion

Sempra Infrastructure, a unit of Sempra, has received non-FTA approval from the US Department of Energy for the second phase of its Port Arthur LNG export project in Texas.