Page 7 - NorthAmOil Week 30 2021

NorthAmOil COMMENTARY NorthAmOil

PGNiG is stepping up
LNG purchases from
other sources.

for supply from the project. Martin had previ- Moreover, based on LNG, we plan to develop
ously said that he did not see any scenario under our commercial activity in the global trading
which an FID would be taken without the pro- market. Expanding our co-operation with Ven-
ject being fully contracted. ture Global LNG fits in with both of these goals.”
The MoU is non-binding, and a definitive
agreement between Sempra and PGNiG would Appetite for LNG
need to be finalised. The companies noted PGNiG’s moves illustrate that the appetite for
that as part of the MoU, they are also working striking new LNG supply deals is returning. LNG
towards a framework for the reporting, mitiga- producers in the US and elsewhere have seen a
tion and reduction of greenhouse gas (GHG) flurry of new deals recently. Indeed, the decision
emissions throughout the LNG value chain. by PGNiG to back out of the Port Arthur SPA
“We are also determined to curb the car- could suggest that acquiring LNG has taken on
bon footprint of fuels offered by PGNiG and new urgency, and that the company prefers to
we are convinced that co-operation with LNG commit to projects that appear more certain to
producers like Sempra LNG will contribute to move forward in the near future. And Venture The decision by
reaching this goal in the most effective way,” said Global is currently targeting an FID on Plaque-
Majewski. mines LNG in 2021, even as Sempra pushes back PGNiG to back out
Meanwhile, PGNiG made a separate the timeline for Port Arthur. of the Port Arthur
announcement that it had agreed to buy an addi- As well as seeing environmental benefits to
tional 2mn tpy of LNG from another US-based buying LNG, Poland is keen to eliminate the SPA could suggest
company, Venture Global LNG. PGNiG already need for imports of natural gas via pipeline from
had agreements in place to buy LNG from both Russia. Warsaw has been deepening its energy that acquiring
Venture Global’s Calcasieu Pass LNG project, co-operation with the US and also hopes that
which is under construction, and its proposed the North American country will help finance LNG has taken on
Plaquemines LNG project. The latest agree- Poland’s first nuclear power plant (NPP). new urgency.
ment raises the volumes that PGNiG will buy However, relations between the two countries
from Calcasieu Pass to 1.5mn tpy from 1mn tpy have been strained recently by the US’ agree-
previously, and those from Plaquemines from ment with Germany over the Nord Stream 2
2.5mn tpy to 4mn tpy. Once the relevant SPAs pipeline from Russia. Poland opposes the Nord
are amended, PGNiG will stand to buy 5.5mn Stream 2 project, claiming that the pipeline is a
tpy in total from the two Venture Global termi- threat to energy security in Central and Eastern
nals, which are both located in Louisiana. Europe. The US and Germany are seeking to
“LNG plays a vital role in PGNiG’s strategy,” alleviate that potential threat, with their agree-
said Majewski. “It is a key component of our ment including penalty costs for Russia if Mos-
supply portfolio diversification and the plan to cow uses the new pipeline to harm Ukraine or
reinforce the energy security of our customers. other Eastern European countries.™

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