Sempra, PGNiG reach 3-million tpy LNG-supply HoA
Sempra Infrastructure has agreed to sell Polish Oil & Gas Co. (PGNiG) 3 million tonnes/year (tpy) of LNG from its Cameron LNG and Port Arthur LNG plants on the US Gulf of Mexico, starting by end-2027. LNG will be delivered to a planned 6 billion cu m/year (bcmy) floating terminal in Gulf of Gdansk, Poland.
The heads of agreement between PGNiG and Sempra provides for signing 20-year free-on-board sales and purchase agreements for 2 million tpy of LNG from the future expansion of Cameron LNG in Hackberry, La., and 1 million tpy from the anticipated Port Arthur LNG plant in Port Arthur, Tex.
Cameron LNG Phase 1 liquefaction began operations in 2019. Currently, Cameron LNG can produce 12 million tpy. Sempra’s planned expansion will increase capacity to nearly 19 million tpy.
Port Arthur LNG will produce about 13.5 million tpy in its first phase of operation. The project has obtained all necessary permits to start investment, according to the companies.
OGP Gaz-System SA is developing the Gulf of Gdansk terminal and has finished the first phase of an open season assessing market interest in the project. PGNiG placed an order for the project’s floating storage and regasification unit during the open season.
Gaz-System expects to hold the second phase of its open season for the new terminal, during which binding commitments will be secured, during 2023. The company also operates the President Lech Kaczynski LNG terminal in Świnoujście, Poland.
PGNiG already has long-term contracts totaling 7 million tpy with US LNG producers, delivering more than 9 bcmy of natural gas after regasification. The contracts provide for a significant increase in supplies from the US starting in 2023.
The company has 100% of regasification capacity at Świnoujście, which, after completion of an expansion currently under way will put out 6.2 bcmy of gas, with a target capacity of 8.3 bcmy after further expansion in 2024. PGNiG also has booked capacity at the 4-bcmy terminal in Klaipeda, Lithuania. Supplies received in Klaipeda can provide gas for customers in the Baltic States as well as Poland via the Poland-Lithuania Gas Pipeline, launched last week (OGJ Online, May 9, 2022).
Christopher E. Smith | Editor in Chief
Christopher brings 27 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 15 of them in midstream and transportation sectors.
