Sempra Infrastructure and PGNiG advance North American LNG alliance
Published by Abi Larkin,
Sempra Infrastructure, a subsidiary of Sempra, and the Polish Oil and Gas Company (PGNiG) have announced they have entered into a Heads of Agreement (HOA) for the purchase of approximately 3 million tpy of LNG delivered FOB from Sempra Infrastructure’s portfolio of LNG projects in North America.
“Today’s agreement underscores our commitment to help provide greater energy security to Poland and our global partners through long-term LNG sales,” said Dan Brouillette, President of Sempra Infrastructure. “Our relationship with PGNiG is core to this commitment, and we are excited to continue working closely with them to advance more reliable, secure, and increasingly clean energy solutions.”
“The agreement signed today paves the way for negotiations of detailed terms that would provide PGNiG with LNG from a reliable and highly valued infrastructure partner. Here in Poland, LNG is already one of the cornerstones of our diversified strategy to enhance Polish energy security, as well as to strengthen the commercial potential of the PGNiG Group. We are determined to further expand our operations in this direction and are therefore taking steps to secure access to adequate natural gas volumes in the future,” said Iwona Waksmundzka-Olejniczak, PGNiG SA President.
The referenced HOA contemplates the negotiation and finalisation of definitive 20-year LNG Sales and Purchase Agreements (SPA) for 2 million tpy from the Cameron LNG Phase 2 project under development in Louisiana, US, and 1 million tpy from the Port Arthur LNG project under development in Texas, US. The HOA also provides PGNiG the opportunity in 2022 to reallocate volumes from the Cameron LNG Phase 2 project to the Port Arthur LNG project. Additionally, Sempra Infrastructure and PGNiG expect to continue working toward a framework for the reduction, mitigation, and reporting of greenhouse gas (GHG) emissions across the LNG value chain.
Sempra Infrastructure is developing the Cameron LNG Phase 2 project, which is expected to include a single LNG train with a maximum production capacity of approximately 6.75 million tpy of LNG as well as debottlenecking of the existing three LNG trains at the facility in Hackberry, Louisiana. Last month, Sempra Infrastructure signed a HOA with the Cameron LNG partners for the development of the Cameron LNG Phase 2 project. In addition, Sempra Infrastructure is also developing the proposed Port Arthur LNG project, an approximately 13.5 million tpy, fully permitted facility on a 3000 acre site in Jefferson County, Texas.
The HOA is a preliminary, non-binding arrangement, and the development of the Cameron LNG Phase 2 and Port Arthur LNG projects remains subject to a number of risks and uncertainties, including reaching definitive agreements, securing all necessary permits, signing engineering and construction contracts, obtaining financing and incentives, and reaching a final investment decision (FID) for each project.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/17052022/sempra-infrastructure-and-pgnig-advance-north-american-lng-alliance/
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