Poles Ink Terms for Sempra LNG Contract
Poland’s largest gas supplier and importer PGNiG has signed not one but two LNG agreements during the opening day of the World Gas Conference in Washington DC on June 26.
Its signature of a heads of agreement for a 20-year contract with Venture Global LNG starting 2022 or 2023 has already been reported by NGW. PGNiG's contract with Russian giant Gazprom will have expired by then.
The same day, PGNiG also signed an agreement with Sempra LNG & Midstream-run Port Arthur LNG which defines basic terms and conditions of a 20-year contract to be finalised for another 2mn mt/yr , also starting 2023. Cargoes will come from the Port Arthur LNG facility being developed in Jefferson County, Texas.
"We look forward to working with PGNiG to finalize the LNG supply agreement that will provide low-cost, flexible and reliable US LNG to PGNiG and bring competitively priced natural gas to the Polish and other European gas markets," said Octavio Simoes, president of Sempra LNG & Midstream, a Sempra Energy subsidiary.
In 2017, Sempra signed a memorandum of understanding with South Korea’s Kogas providing a framework for cooperation, including equity ownership and offtake, in Port Arthur LNG. “The ultimate participation of Kogas and PGNiG in the project remains subject to finalization of definitive agreements,” said Sempra June 26.
State-run PGNiG CEO Piotr Wozniak said: "Starting in 2023, LNG deliveries from the Port Arthur terminal can not only help us to further diversify our import structure, but will also help us in strengthening PGNiG's activities on the international LNG market.”
The Port Arthur LNG liquefaction plant is planned to export some 11mn mt/yr starting 2023. Last week Bechtel was selected as its engineering, procurement, construction and commissioning (EPC) contractor.
Photo credit: PGNiG. From left to right: Octavio Simoes (president of Sempra LNG & Midstream), Joseph Householder (president and COO, Sempra Energy), Piotr Wozniak (CEO PGNiG) and Maciej Wozniak (VP PGNiG, responsible for trading)