Page 5 - GLNG Week 05 2023

GLNG COMMENTARY GLNG

LNG sale and purchase agreements

in US up in 2022

Many of the deals are with Asian buyers, but Europe’s need for non-Russian gas is also fuelling the market.

CHINA LNG exports in the US are booming as supply became one of the main suppliers of natural gas
in Europe remains tight following sanctions on to Poland, added PKN ORLEN’s CEO, Daniel
WHAT: Russia because of its war in Ukraine. World sup- Obajtek.
Sempra is to supply plies of LNG had already been constrained with Sempra has previously announced long-term
1mn tonnes per year of demand in Asia especially high. sale and purchase agreements (SPA) with each
gas from its proposed In the latest news, Sempra Energy is to sup- of ConocoPhillips, INEOS of the UK, France’s
Port Arthur LNG Phase 1 ply 1mn tonnes per annum (Mtpa) of LNG from ENGIE and RWE of Germany for the proposed
project to Poland in the its proposed Port Arthur LNG Phase 1 project Phase 1 project.
latest in a series of US to Poland’s PKN ORLEN for 20 years. The pro- Phase 1, which is permitted, will include two
LNG supply deals. jected offtake capacity of the Phase 1 project is natural gas liquefaction trains and LNG storage
now fully subscribed under long-term agree- tanks and will be able to produce up to 13.5 Mtpa
WHY: ments with 10.5 Mtpa under binding long-term of LNG. A similarly sized Port Arthur LNG
Europe is scrambling agreements. First cargo deliveries are expected Phase 2 project is under active marketing and
to replace Russian gas, in 2027. development, said Sempra.
while long-term Asian “We are excited to partner with PKN In mid-January, NextDecade announced a
demand prospects are ORLEN, Central Europe’s largest energy group, 15-year SPA with Itochu for the supply of LNG
strong. as they continue to look for long-term, diverse from NextDecade’s proposed Rio Grande export
supplies of secure energy sources,” said Sempra project in Brownsville, Texas. Itochu will pur-
WHAT NEXT: Infrastructure’s CEO Justin Bird. PKN ORLEN chase 1 Mtpa.
US LNG export capacity recently acquired the Polish Oil & Gas Company. “We are honored to have Itochu Corporation
is set to reach 169mn “With the long-term off-take capacity for as our first Japanese customer,” said NextDec-
tonnes per year by 2027. Phase 1 now sold under binding agreements, we ade’s chairman and CEO, Matt Schatzman. “We
expect to reach FID [a final investment decision] look forward to providing Itochu and their cus-
later this quarter and commence construction tomers with LNG, and we are actively working
on the Port Arthur LNG Phase 1 project to help to reduce the carbon footprint of the Rio Grande
meet the increasing demand for LNG across LNG facility through our proposed carbon cap-
Europe and the rest of the world,” said Bird. ture and storage project.” NextDecade is cur-
“Already last year, during a very tense situa- rently targeting FID on the first three trains of
tion on the EU energy market, the United States the project in the first quarter of 2023.

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