Sempra Infrastructure has agreed to supply nearly one million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Port Arthur LNG phase 1 project in the US to PKN ORLEN.
In this regard, the subsidiary of Sempra has signed a long-term sale and purchase agreement (SPA) with the Poland-based petroleum refineries company, which recently acquired the Polish Oil & Gas (PGNiG).
The supply of LNG will be on a free-on-board basis for a period of 20 years.
PKN ORLEN CEO Daniel Obajtek said: “Already last year, during a very tense situation on the EU energy market, the United States became one of the main suppliers of natural gas to Poland.
“By establishing a partnership with Sempra Infrastructure, we are increasing the diversification of our import portfolio and we are securing additional volumes of natural gas, which will be used both to provide for the needs of the Polish customers and to enhance PKN ORLEN’s presence in the international energy market.”
The Port Arthur LNG phase 1 project is currently being developed in Jefferson County, Texas.
Located in southeast Texas, the natural gas liquefaction and export terminal will have an export capacity of up to 27Mtpa of LNG.
The first phase of the LNG terminal, which is fully permitted, will have a capacity of up to around 13.5Mtpa of LNG from two liquefaction trains.
Sempra Infrastructure had previously secured long-term agreements with ConocoPhillips, ENGIE, INEOS, and RWE for the offtake of LNG from the phase 1 project.
The Sempra subsidiary said that the Port Arthur LNG phase 1 project is now fully subscribed with 10.5Mtpa booked under binding long-term agreements.
Sempra Infrastructure is expected to make a final investment decision (FID) for the phase 1 project in Q1 2023, with first cargo deliveries likely to take place in 2027.
Sempra Infrastructure CEO Justin Bird said: “We are excited to partner with PKN ORLEN, Central Europe’s largest energy group, as they continue to look for long-term, diverse supplies of secure energy sources.
“With the long-term off-take capacity for Phase 1 now sold under binding agreements, we expect to reach FID later this quarter and commence construction on the Port Arthur LNG Phase 1 project to help meet the increasing demand for LNG across Europe and the rest of the world.”
