Page 8 - GLNG Week 20 2022

GLNG AMERICAS GLNG

Sempra, PGNiG sign preliminary deal for

LNG supply from two terminals

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

P8 www. NEWSBASE .com Week 20 20•May•2022