Page 6 - EurOil Week 30 2021

EurOil COMMENTARY EurOil

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

POLAND POLAND’S PGNiG has terminated a sale and the company’s investor day presentation, Sem-
purchase agreement (SPA) with US-based Sem- pra’s CEO, Jeffrey Martin, said ECA LNG was
WHAT: pra Energy for 2mn tonnes per year (tpy) of the top infrastructure priority. He added that a
PGNiG has terminated an LNG that would have been supplied from the proposed expansion at Cameron LNG had over-
agreement to buy LNG proposed Port Arthur LNG project. taken Port Arthur LNG in terms of priority.
from Sempra Energy’s At the same time, Sempra and PGNiG signed If Sempra and its partners in Cameron com-
proposed Port Arthur a memorandum of understanding (MoU) for the mit to expanding the facility, they would add a
export terminal. potential purchase of around 2mn tpy of LNG fourth train, with an offtake capacity of over 6mn
from the US company’s other projects. These tpy.
WHY: are Cameron LNG on the US Gulf Coast and Port Arthur LNG, if it goes ahead, would
The Polish company Energía Costa Azul (ECA) LNG, which is cur- have two liquefaction trains and a capacity of
has cited delays to the rently under construction in Mexico. up to 13.5mn tpy. Sempra has selected Bechtel
project’s development as “The MoU allows for shifting the volumes to be the engineering, procurement, construc-
the reason for its move. originally contracted at Port Arthur LNG to tion and commissioning (EPCC) contractor for
other facilities from Sempra’s projects portfolio,” the project. However, Martin said in June that
WHAT NEXT: said PGNiG’s CEO, Paweł Majewski, in a July 27 Port Arthur had “moved back in terms of the
Simultaneously, PGNiG statement. timeline”.
has agreed to buy more PGNiG cited delays to the project’s develop- Sempra had already suggested previously that
LNG from Venture Global ment as the reason for opting to terminate the a final investment decision (FID) on Port Arthur
LNG, and will potentially SPA. could be pushed back from 2021 to 2022, and
purchase additional the MoU with PGNiG comes as a further setback
volumes from Sempra’s Bad news given that the Polish company was the only one
other terminals. The move spells more bad news for the Port to have signed a definitive agreement for supply
Arthur LNG export project in Texas. It comes from the project. Martin had previously said that
after Sempra said in late June that it had been he did not see any scenario under which an FID
unable to finalise a long-term deal with Saudi would be taken without the project being fully
Aramco to support Port Arthur LNG. During contracted.

P6 www. NEWSBASE .com Week 30 29•July•2021