US energy firm Sempra said it has signed a memorandum of understanding with Poland’s dominant gas firm and LNG importer PGNiG.
Under the non-binding deal, PGNiG would buy about 2 million tonnes per annum of liquefied natural gas from Sempra LNG’s portfolio of projects in North America, the US firm said on Tuesday.
As part of the deal, Sempra LNG, a unit of Sempra, and PGNiG are also working toward a framework for the reporting, mitigation and reduction of greenhouse gas (GHG) emissions throughout the LNG value chain.
Port Arthur LNG deal terminated
Sempra said the duo entered the deal in connection with the termination of the parties’ sale and purchase agreement signed in 2018 that provided for 2 mtpa of LNG supply from Sempra’s Port Arthur project.
The deal allows for shifting the volumes PGNiG originally contracted at Port Arthur LNG to other facilities from Sempra’s projects portfolio.
Sempra said earlier this year it would likely postpone a final investment decision on its planned Port Arthur liquefaction project in Texas for the second time.
PGNiG said in a separate statement it made the decision to terminate the deal due to delays in the project’s development.
Besides Porth Arthur, Sempra owns a 50.2% interest in Cameron LNG, a 12-mtpa export facility operating in Hackberry, Louisiana.
The firm is also working on a proposed expansion of the facility through one additional liquefaction train with an offtake capacity of over 6 Mtpa.
Moreover, Sempra, IEnova and TotalEnergies are building the 3 mtpa ECA LNG project in Baja California, Mexico.