Poland’s PKN Orlen, Sempra ink Port Arthur LNG supply deal

Poland’s PKN Orlen has agreed to buy liquefied natural gas for a period of 20 years from Sempra Infrastructure’s proposed Port Arthur LNG project in Texas.

Sempra Infrastructure and PKN Orlen, which completed on November 2 its merger with Poland’s dominant gas firm, PGNiG, signed a long-term sale and purchase agreement (SPA) for the supply of 1 million tonnes per annum on a FOB basis.

The supplies would come from the first phase of the Porth Artur LNG project, according to a statement by Sempra Infrastructure, a unit of Sempra.

This deals follows a heads of agreement PGNiG and Sempra Infrastructure signed in May 2022.

Under that deal, the two firms agreed to work on finalizing 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.

First phase of Port Arthur LNG fully subscribed

Sempra Infrastructure previously entered into long-term agreements with each of ConocoPhillips, Ineos, Engie and the most recent with RWE for the sale and purchase of LNG from the proposed first phase of the Porth Arthur project.

In aggregate, Port Arthur LNG Phase 1 is now fully subscribed with 10.5 Mtpa under binding long-term agreements, Sempra Infrastructure said.

“The company is 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,” it said.

In October last year, the company announced that it had finalized its fixed-price engineering, procurement and construction (EPC) contract for Port Arthur LNG Phase 1 with Bechtel.

The two firms amended and restated the fixed-price contract which now is worth about $10.5 billion.

Also, the liquefaction project would consist of two liquefaction trains each capable of producing up to 6.73 mtpa.

Sempra Infrastructure also plans a similarly sized second phase of the project.

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