Page 8 - GLNG Week 30 2021

GLNG COMMENTARY GLNG

Port Arthur LNG plans suffer

another blow with PGNiG moves

Poland’s PGNiG has terminated a sale and purchase agreement with US-based

Sempra Energy for LNG that would have been supplied from the proposed Port

Arthur LNG project

PROJECTS & POLAND’S PGNiG has terminated a sale and unable to finalise a long-term deal with Saudi
COMPANIES purchase agreement (SPA) with US-based Sem- Aramco to support Port Arthur LNG. During
pra Energy for 2mn tonnes per year (tpy) of the company’s investor day presentation, Sem-
WHAT: LNG that would have been supplied from the pra’s CEO, Jeffrey Martin, said ECA LNG was
PGNiG has terminated an proposed Port Arthur LNG project. the top infrastructure priority. He added that a
agreement to buy LNG At the same time, Sempra and PGNiG signed proposed expansion at Cameron LNG had over-
from Sempra Energy’s a memorandum of understanding (MoU) for taken Port Arthur LNG in terms of priority.
proposed Port Arthur the potential purchase of around 2mn tpy of If Sempra and its partners in Cameron com-
export terminal. LNG from the US company’s other projects. mit to expanding the facility, they would add
These are Cameron LNG on the US Gulf Coast a fourth train, with an offtake capacity of over
WHY: and Energía Costa Azul (ECA) LNG, which is 6mn tpy.
The Polish company currently under construction in Mexico. Port Arthur LNG, if it goes ahead, would have
has cited delays to the “The MoU allows for shifting the volumes two liquefaction trains and a capacity of up to
project’s development as originally contracted at Port Arthur LNG to 13.5mn tpy. Sempra has selected Bechtel to be
the reason for its move. other facilities from Sempra’s projects portfolio,” the engineering, procurement, construction
said PGNiG’s CEO, Paweł Majewski, in a July 27 and commissioning (EPCC) contractor for
WHAT NEXT: statement. the project. However, Martin said in June that
Simultaneously, PGNiG PGNiG cited delays to the project’s develop- Port Arthur had “moved back in terms of the
has agreed to buy more ment as the reason for opting to terminate the timeline”.
LNG from Venture Global SPA. Sempra had already suggested previously
LNG, and will potentially that a final investment decision (FID) on Port
purchase additional Bad news Arthur could be pushed back from 2021 to 2022,
volumes from Sempra’s The move spells more bad news for the Port and the MoU with PGNiG comes as a further
other terminals. Arthur LNG export project in Texas. It comes setback given that the Polish company was the
after Sempra said in late June that it had been only one to have signed a definitive agreement

PGNiG’s move is the
latest in a series of
setbacks for Port Arthur
LNG.

P8 www. NEWSBASE .com Week 30 30•July•2021