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|PGNiG and Port Arthur LNG Reach Definitive Agreement|
|= PGNiG to purchase 2 mtpa of LNG from 2023 =|
Polish state-run oil firm PGNiG on 19th local time announced it has signed an LNG sale and purchase agreement (SPA) with Port Arthur LNG that operates an LNG production project in the US. They reached a Heads of Agreement this June and had been negotiating since then. Under the SPA, PGNiG purchased two million mt a year of LNG over 20 years from 2023.|
The shipment is on a FOB basis. PGNiG plans to deliver the LNG to its own country or sell to third parties. With the destination-free US LNG, the Company aims to raise its presence in the LNG market.
Port Arthur is the third US-based LNG supplier that PGNiG has signed SPA deal with. It signed a 2-mtpa deal with Venture Global this October and up-to 1.45-mtpa deal with Cheniere Energy this November. The planned purchase volume from the US has expanded up to 5.45 million mt a year.
The Port Arthur-led LNG production project plans to build an LNG production/export terminal in Texas with a capacity of 11 mtpa consisting of two LNG trains. Sempra Energy, the parent company of Port Arthur, appreciated the SPA deal with PGNiG, saying, "(This) represents a major step forward in the development of our Port Arthur LNG project."
Incidentally, another Sempra Energy-operated project the Cameron LNG project commenced commissioning last month.
|last modified : Fri 28 Dec, 2018 [10:17]|