Page 12 - NorthAmOil Week 20 2022

NorthAmOil COMMENTARY NorthAmOil

Sempra is planning
to add a fourth
liquefaction train at the
Cameron LNG terminal.

Sempra, PGNiG sign preliminary deal

for LNG supply from two terminals

US-POLAND SAN Diego-headquartered Sempra Energy (MoU) on reallocating the volumes that would
announced this week that it had signed a heads have come from Port Arthur to the other two
of agreement (HoA) with Poland’s PGNiG on the LNG projects in Sempra’s portfolio – Cameron
purchase of 3mn tonnes per year (tpy) of LNG and the under-construction Energía Costa Azul
from two projects over a 20-year period. LNG project in Mexico.
Under the preliminary agreement, Sempra’s Sempra said last year that FID on Port
Cameron LNG Phase 2 project in Louisiana will Arthur would be delayed until 2022 and that
provide about 2mn tpy, while the other 1mn tpy it would prioritise the expansion of Cameron
would come from the proposed Port Arthur LNG. Last month, the company revealed that
LNG project in Texas. it had requested an extension, until March
An option will also be available this year for 2023, to build two pipelines in Texas and Loui- The news marks a
PGNiG to reallocate volumes from the Cameron siana that will connect to the Port Arthur LNG
Phase 2 project to the Port Arthur facility. The facility. change in fortune
Cameron Phase 2 project is expected to include PGNiG said this week that the new HoA
a single LNG train with a maximum production opens the door to begin negotiating terms of a for the Port Arthur
capacity of about 6.75mn tpy. Sempra signed an future contract for supply beginning in 2027 on
HoA with its partners in Cameron on develop- a free-on-board (FOB) basis. project, which
ing the expansion – which would be the existing “Today’s agreement underscores our com- had previously
terminal’s fourth train – last month. mitment to help provide greater energy security
The Port Arthur facility, meanwhile, would to Poland and our global partners through long- been pushed to
have a capacity of around 13.5mn tpy. The news term LNG sales,” stated Sempra Infrastructure’s
marks a change in fortune for the Port Arthur president, Dan Brouillette. the backburner.
project, which had previously been pushed to the Poland is leaning heavily on LNG as it seeks
backburner after PGNiG pulled out of a sales and to bolster its energy security and wean itself off
purchase agreement (SPA) for 2mn tpy in July gas from Russia’s Gazprom. The Russian gas
2021 owing to delays to the project’s develop- giant suspended shipments to the country in
ment. At the time, it was the only deal support- late April after it rejected Moscow’s demand to
ing the project, after another potential deal with switch payment to rubles.
Saudi Aramco fell through. Sempra pushed back PGNiG currently imports 7mn tpy, or 9bn
the planned final investment decision (FID) on cubic metres after regasification, from US part-
Port Arthur again as a result of PGNiG’s termi- ners, meaning the contract with Sempra would
nation of its SPA. The two companies instead increase its supply by over 40%. The country
signed a memorandum of understanding consumes roughly 20 bcm per year of gas.™

P12 www. NEWSBASE .com Week 20 19•May•2022