Page 6 - NorthAmOil Week 30 2021

NorthAmOil COMMENTARY NorthAmOil

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

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

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