Port Arthur LNG Signs 20-Year Supply Deal With Poland
Thursday, December 20, 2018
Port Arthur LNG has signed a 20-year supply deal with Poland's state-owned natural gas company.
The Sempra Energy-owned facility and Polish Oil & Gas Company, or PGNiG, announced the liquefied natural gas deal early Wednesday morning.
Financial terms were not disclosed but Sempra Energy confirmed that the agreement is for the sale and purchase of 2 million metric tons of LNG per year, an amount that will meet about 15 percent of Poland's daily needs.
The deal makes Poland a foundation customer for Port Arthur LNG, a proposed Jefferson County facility that is still waiting on a final investment decision from Sempra Energy.
In a statement, Sempra Energy CEO Jeffrey Martin said the deal with Poland helps the company achieve its long-term goal of exporting 45 million tonnes of LNG per year.
"Last month, we began the commissioning phase of our Cameron LNG liquefaction-export facility in Louisiana," Martin said. "This agreement, along with the great progress on Cameron LNG, continue to validate our growth strategy as we advance our vision to become North America's premier energy infrastructure company."
Port Arthur LNG's deal with Poland follows a recent visit by U.S. Secretary of Energy Rick Perry to the East European nation where energy security was a topic of concern.
"This agreement marks an important step toward Poland's energy independence and security," Perry said in a statement.
Like other European nations, Poland has relied on a natural gas supplied via pipeline Russia. Shipments from Port Arthur LNG "Our activities show that we consistently implement our strategy," PGNiG Management Board President Piotr Woźniak said in a statement.
"Another long-term contract not only allows us to develop 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. I am convinced that we will have good long-term cooperation."