Sempra Firms Up PGNiG Deal, Subject to FID
US supplier Sempra Energy and Polish state-run gas supplier PGNiG said December 19 they have firmed up their agreement into a definitive 20-year sale-and-purchase agreement (SPA).
The definitive SPA now signed is for 2mn mt/yr, as per their original initial agreement that was signed in June. It will be delivered from Sempra's Port Arthur LNG project in Texas.
Announcing the firm SPA, Sempra said the deal is "an important milestone as [it] pursues its long-term goal of exporting 45mn mt/yr of North American LNG," while US secretary of energy Rick Perry chipped in: "This agreement marks an important step toward Poland's energy independence and security."
When first initialed in June, Sempra said supplies to PGNiG from Port Arthur would start in 2022 or 2023. It said December 19 that cargoes will be supplied free-on-board, with PGNiG responsible for shipping to either Poland or wherever it wishes to take the LNG.
PGNiG's CEO, Piotr Wozniak, said: "Another long-term contract not only allows us to develop [our] 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. I am glad that Sempra Energy is among our American partners." PGNiG firmed up a similar 2mn mt/yr 20-year deal with rival US supplier Venture Global this October, also initialed in June 2018.
The 2mn mt/yr (2.7bn m3/yr) will be enough to meet about 15% of Poland's daily gas needs, but remains contingent on the 11mn mt/yr Port Arthur LNG project taking a final investment decision and securing more clients. Sempra signed a Memorandum of Understanding last year with South Korean state importer Kogas for potential participation in Port Arthur.
It also noted that the first phase of its Cameron LNG project is currently being commissioned, with LNG expected to be produced from all three trains in 2019.