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Poland reaches 20-year deal to buy LNG from Sempra's Port Arthur facility


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Poland reaches 20-year deal to buy LNG from Sempra's Port Arthur facility

Sempra Energy subsidiary Port Arthur LNG LLC struck a 20-year agreement with Polish Oil and Gas Co. to buy 2 million tonnes per annum of liquefied natural gas from the Port Arthur liquefaction and export facility in Texas.

Under the sale and purchase agreement, the LNG will be sold on a free-on-board basis and Polish Oil and Gas, or PGNiG, will be in charge of shipping the LNG from the Port Arthur terminal to its chosen destination, according to a Dec. 19 news release.

PGNiG plans to distribute the LNG to domestic customers in Poland, or trade it on the global market. The amount of LNG, equivalent to about 2.7 billion cubic meters per year after regasification, would meet about 15% of Poland's demand, according to Sempra.

The Port Arthur export project is designed to have two liquefaction trains with a processing capacity of 11 mtpa, up to three LNG storage tanks, two marine berths and other facilities. The project is due to get a final environmental impact statement from the Federal Energy Regulatory Commission in January 2019, and has yet to receive a final investment decision.

U.S. and Poland in November entered into an energy cooperation pact that included boosting LNG imports into the country in support of energy diversification. PGNiG has also agreed to buy LNG from Cheniere Energy Inc. and Venture Global LNG.