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    PGNiG expands LNG purchases from Venture Global

Summary

The Polish firm has also scrapped a deal for supplies from the delayed Port Arthur LNG project, but could tap the same amount of gas from other Sempra projects.

by: Joseph Murphy

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PGNiG expands LNG purchases from Venture Global

Polish gas company PGNiG has agreed to buy an extra 2mn metric tons/year of LNG from Venture Global's Calcasieu Pass and Plaquemines LNG terminals, bringing its total deliveries from the US exporter to 5.5mn mt/yr.

PGNiG has raised purchases from the Calcasieu Pass LNG terminal in Louisiana from 1.0 to 1.5mn mt/yr, the company said on July 27. The 10mn mt/yr terminal is currently under construction, following a final investment decision (FID) in August 2019. It is on track to start exports in 2022.

The Polish company has meanwhile expanded contractual supplies from the 10mn mt/yr Plaquemines LNG terminal, also in Louisiana, from 2.5 to 4.0mn mt/yr. Its agreements with Venture Global are on a free-on-board basis.

PGNiG said separately it had terminated a contract for 2mn mt/yr of LNG from Sempra's Port Arthur LNG project in Texas, amid delays in its development. But it has signed a memorandum of understanding (MoU) with Sempra for an equal amount of supply from the US company's other projects in North America.

"We highly value our relationship with Sempra LNG and we are keen to continue it," PGNiG CEO Pawel Majewski said in a statement. "The MoU allows for shifting the volumes originally contracted at Port Arthur LNG to other facilities from Sempra LNG's project portfolio."

Sempra operates the 12mn mt/yr Cameron LNG facility in Louisiana and is looking to add an extra 6mn mt/yr train at the facility. It is also developing the 3.25mn mt/yr ECA LNG plant in Mexico, having taken an FID on that project in November last year. It is discussing a potential expansion there as well.