Port Arthur LNG LLC, a subsidiary of Sempra Energy, and Polish Oil & Gas Company (PGNiG) entered into a definitive 20-year sale and purchase agreement for liquefied natural gas (LNG) from the Sempra-led Port Arthur LNG liquefaction-export facility under development in Jefferson County, Tex.
The agreement is for 2 million tonnes a year, or approximately 2.7 billion cu m/year (after regasification)—enough natural gas to meet about 15% of Poland's daily needs, the company said. Under the agreement, LNG purchases from Port Arthur LNG will be made on a free-on-board basis, with PGNiG responsible for shipping the LNG from the Port Arthur terminal to the final destination. Port Arthur LNG will manage gas pipeline transportation, liquefaction processing and cargo loading, giving PGNiG flexibility in cargo management. PGNiG plans to deliver cargos to domestic customers in Poland or trade LNG on the global market, once operations commence.
The agreement is subject to certain conditions precedent, including Port Arthur LNG making a final investment decision. Financial terms were not disclosed.
The liquefaction-export facility—scheduled to receive final environmental impact statement from the Federal Energy Regulatory Commission in January 2019—is proposed to include two natural gas liquefaction trains capable of processing approximately 11 million tpy of LNG; up to three LNG storage tanks; two marine berths, and associated facilities.
Earlier this year, Bechtel was selected to serve as the engineering, procurement, construction and commissioning contractor for the facility, subject to reaching a definitive agreement.
