PGNiG terminates Port Arthur LNG agreement
Polish Oil and Gas Company (PGNiG) decided to terminate the SPA with Port Arthur LNG. The companies continue cooperation in order to shift the contracted volumes to other liquefaction projects from Sempra LNG’s portfolio, according to the company's release.
PGNiG terminated the sale and purchase agreement (SPA) that provided for 2 Mtpa of LNG supply to be delivered from the Port Arthur LNG project. The decision was made due to delays in the project’s development. Simultaneously PGNiG and Sempra signed a Memorandum of Understanding (MoU) for a potential replacement of approximately 2 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) supplied from other Sempra LNG’s portfolio of projects in North America.
Sempra LNG is a majority stakeholder in Cameron LNG, a 12-Mtpa export facility operating in Hackberry, Louisiana (Phase 1) and is working with Cameron LNG to expand the facility through one additional liquefaction train with an offtake capacity of over 6 Mtpa. Moreover, Sempra LNG is one of the stakeholders building the 3-Mtpa ECA LNG project in Baja California, Mexico. Phase 1 of the project has started construction and first production of LNG is expected by the end of 2024. A potential expansion project is in early stages of development.
PGNiG and Port Arthur LNG SPA was signed in 2018. Under the agreement, LNG was to be delivered on a FOB (free on board) basis with PGNiG being responsible for lifting the cargoes from the 11 Mtpa liquefaction facilities located at Port Arthur LNG in Texas and shipping them to final destinations. The FID to build Port Arthur LNG has not been taken.
