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.

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