Port Arthur LNG, a subsidiary of San Diego-based energy services holding company Sempra Energy, and Polish Oil & Gas (PGNiG) have signed a 20-year sale-and-purchase agreement for liquefied natural gas (LNG) from the Port Arthur LNG liquefaction-export facility under development in Jefferson County, Texas, US.
Image: Port Arthur, Polish Oil sign agreement on US LNG export to Europe. Photo courtesy of rawpixel on Unsplash.
However, the financial terms of the agreement were not disclosed.
Sempra Energy has set a long-term goal of exporting 45 million tons per annum (mtpa) of North American LNG.
The agreement is for the sale and purchase of 2mtpa, or approximately 2.7 billion m² per year (after regasification), enough natural gas to meet 15% of Poland’s daily needs.
The agreement is subject to certain conditions, including Port Arthur LNG making a final investment decision.
Under the agreement, LNG will be purchased from Port Arthur LNG on a Free-On-Board basis, with PGNiG responsible for shipping the LNG from the Port Arthur terminal to the final destination.
Port Arthur LNG will manage gas pipeline transportation, liquefaction processing and cargo loading, which will give PGNiG flexibility in cargo management.
PGNiG plans to deliver cargos to customers in Poland or trade LNG on the global market, once operations commence.
In addition to the PGNiG agreement,
In 2017, Sempra Energy signed an MoU with Korea Gas for participation in the Port Arthur LNG project.
The company has partnered with Mitsubishi, Mitsui and Total for the construction of the Cameron LNG liquefaction-export project in Hackberry, Louisiana.
The first phase is being commissioned and LNG is expected to be produced from all three liquefaction trains in 2019.
Sempra Energy also has an MoU with Total for some export capacity at Cameron LNG Phase 2, and Heads of Agreements (HoAs) with Mitsui &, Tokyo Gas and Total, for the entire export capacity at Energía Costa Azul Phase 1 in Baja California, Mexico.
The Port Arthur liquefaction-export facility is expected to include two liquefaction trains capable of processing 11mtpa of LNG; three LNG storage tanks; two marine berths and associated facilities.
The liquefaction-export facility is scheduled to receive final environmental impact statement from the Federal Energy Regulatory Commission in January 2019.