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Sempra Energy inks 20-year deal to export LNG to Poland

Sempra Energy subsidiary Port Arthur LNG and Polish Oil & Gas Company (PGNiG) have inked an agreement to export two million tonnes per annum (mtpa) of LNG from North America to Poland.

The deal is a 20-year sale-and-purchase agreement for LNG from the Port Arthur LNG liquefaction-export facility under development in Jefferson County, Texas.

“This agreement with PGNiG represents an important expansion of our portfolio of contracts for LNG exports and major step forward in the development of our Port Arthur LNG project. Last month, we began the commissioning phase of our Cameron LNG liquefaction-export facility in Louisiana,” said Jeffrey W. Martin, chairman and ceo of Sempra Energy.

Piotr Woźniak, president of the management board of PGNiG, commented: “Another long-term contract not only allows us to develop LNG portfolio with a view to delivering to Poland, but it gives us, in the near future, the possibility of trading in LNG purchased on a global scale.”

Read more: Positive outlook for LNG Shipping

Under the agreement, LNG purchases from Port Arthur LNG will be made on a free-on-board basis, with PGNiG responsible for shipping the LNG.

Port Arthur LNG will manage gas pipeline transportation, liquefaction processing and cargo loading, giving PGNiG flexibility in cargo management.

The Port Arthur LNG liquefaction-export facility in Jefferson County is proposed to include two natural gas liquefaction trains capable of processing approximately 11mtpa of LNG, up to three LNG storage tanks, two marine berths, and associated facilities.

The liquefaction-export facility is expected to receive its final environmental impact statement from the Federal Energy Regulatory Commission next month.