Sempra Infrastructure and PGNiG Advance North American LNG Alliance
Companies announce heads of agreement for off-take capacity from Cameron LNG Phase 2 and Port Arthur LNG
Sempra Infrastructure, a subsidiary of Sempra, and the Polish Oil & Gas Company have announced they have entered into a heads of agreement (HOA) for the purchase of approximately 3 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) delivered free-on-board from Sempra Infrastructure's portfolio of LNG projects in North America.
Dan Brouillette, president of Sempra Infrastructure, said:
"Today's agreement underscores our commitment to help provide greater energy security to Poland and our global partners through long-term LNG sales. Our relationship with PGNiG is core to this commitment, and we are excited to continue working closely with them to advance more reliable, secure and increasingly clean energy solutions."
Iwona Waksmundzka-Olejniczak, PGNiG SA president, said:
"The agreement signed today paves the way for negotiations of detailed terms that would provide PGNiG with LNG from a reliable and highly valued infrastructure partner. Here in Poland, LNG is already one of the cornerstones of our diversified strategy to enhance Polish energy security, as well as to strengthen the commercial potential of the PGNiG Group. We are determined to further expand our operations in this direction and are therefore taking steps to secure access to adequate natural gas volumes in the future."
The referenced HOA contemplates the negotiation and finalization of definitive 20-year LNG sale-and-purchase agreements for 2 Mtpa from the Cameron LNG Phase 2 project under development in Louisiana, and 1 Mtpa from the Port Arthur LNG project under development in Texas. The HOA also provides PGNiG the opportunity in 2022 to reallocate volumes from the Cameron LNG Phase 2 project to the Port Arthur LNG project. Additionally, Sempra Infrastructure and PGNiG expect to continue working toward a framework for the reduction, mitigation and reporting of greenhouse gas emissions across the LNG value chain.
Sempra Infrastructure is developing the Cameron LNG Phase 2 project, which is expected to include a single LNG train with a maximum production capacity of approximately 6.75 Mtpa of LNG as well as debottlenecking of the existing three LNG trains at the facility in Hackberry, Louisiana. Last month, Sempra Infrastructure signed an HOA with the Cameron LNG partners for the development of the Cameron LNG Phase 2 project. In addition, Sempra Infrastructure is also developing the proposed Port Arthur LNG project, an approximately 13.5 Mtpa, fully permitted facility on a 3,000-acre site in Jefferson County, Texas.
The HOA is a preliminary, non-binding arrangement, and the development of the Cameron LNG Phase 2 and Port Arthur LNG projects remains subject to a number of risks and uncertainties, including reaching definitive agreements, securing all necessary permits, signing engineering and construction contracts, obtaining financing and incentives and reaching a final investment decision for each project.