PGNiG and Sempra ink LNG supply deal

Poland's PGNiG has signed a non-binding agreement with Sempra Energy to purchase 3mn metric tons/year of LNG from the US, just days after announcing it would sharply increase offtake from its Norwegian upstream gas assets.

Sempra said May 16 it had completed negotiations on a heads of terms deal to deliver free-on-board LNG over 20 years from the 13.5mn metric tons/year Cameron LNG plant in Louisiana, and the up to 13.5mn mt/yr Port Arthur LNG plant under development in Texas. 

Under the Cameron LNG part of the agreement, Sempra will deliver gas volumes to Poland from the second phase of the project, which will increase capacity to 20.9mn mt/yr.  For the remainder of this year, PGNiG can also transfer LNG purchases under the HoA from Cameron LNG to Port Arthur LNG.

As it stands, it will receive 2mn mt/yr from Cameron LNG phase 2, and 1mn mt/yr from Port Arthur LNG. Both LNG plants are still to receive a final investment decision. PGNiG had previously agreed to buy LNG from the Port Arthur project, but pulled out of the agreement in July 2021 when the FID was delayed. Sempra currently anticipates taking the decision later this year or in 2023.

Sempra and PGNiG will also collaborate on greenhouse gas emissions, searching for ways to reduce, mitigate and report GHG across the LNG value chain.

PGNiG president Iwona Waksmundzka-Olejniczak welcomed the partnership deal and said Sempra would become a "reliable and highly valued" LNG infrastructure partner.

"Here in Poland, LNG is already one of the cornerstones of our diversified strategy to enhance Polish energy security, as well as to strengthen the commercial potential of the PGNiG Group.

"We are determined to further expand our operations in this direction and are therefore taking steps to secure access to adequate natural gas volumes in the future."