PGNiG increases North American LNG volumes, cuts Port Arthur LNG

Polish Oil & Gas Co. SA (PGNiG) has agreed with Venture Global Calcasieu Pass LLC and Venture Global Plaquemines LLC to purchase another 2 million tonnes/year (tpy) of LNG for 20 years, bringing the total volume of LNG contracted from Venture Global LNG by PGNiG to 5.5 million tpy.

The agreements increase volumes contracted in 2018 and 2019. Instead of 1 million tpy, PGNiG intends to purchase 1.5 million tpy from the under-construction 10-million tpy Calcasieu Pass plant, while the volume contract from Plaquemines (20 million tpy) will increase to 4 million tpy from 2.5 million tpy. Cargoes will be sold on a free on-board basis.

PGNiG expects Calcasieu Pass to begin commercial deliveries in early 2023.

PGNiG also entered an MOU with Sempra LNG for the potential purchase of 2 million tpy of LNG from Sempra's North American liquefaction plants. The MOU is nonbinding and coincides with the termination of the parties' 2018 agreement for 2 million tpy to be delivered from Sempra’s 11-million tpy Port Arthur LNG project, which has experienced delays (OGJ Online, May 7, 2021).

Sempra LNG owns a 50.2% interest in 12-million tpy Cameron LNG in Hackberry, La., and is considering with its partners a proposed expansion of the plant through adding a third 6-million tpy train. Partners in Cameron LNG include Mitsui & Co., Mitsubishi Corp., TotalEnergies, and NYK Line.

Sempra LNG, its IEnova subsidiary, and TotalEnergies are also building the 3-million tpy Energia Costa Azul LNG plant in Baja California, Mexico. Phase 1 of the project is under construction and first production is expected by end-2024. A potential expansion of the plant is in the early stages of development.