Officials from Polish Oil & Gas Co. (PGNiG) and Port Arthur LNG, a subsidiary of Sempra LNG & Midstream, signed an agreement relating to delivery terms over 20 years of LNG from the Sempra LNG & Midstream subsidiary’s Port Arthur, Tex., liquefaction facility on June 27 as the 2018 World Gas Conference moved into it second day.
The agreement defines basic terms and conditions of a contract to be finalized between the parties for the sales and purchase of 2 million tonnes/year of LNG. Cargoes would be supplied starting in 2023 from the Port Arthur LNG facility being developed in Jefferson County, Tex.
Deliveries have the flexibility to allow for further trading by PGNiG on international markets and are contemplated to be supplied on a fob basis whereby PGNiG is responsible for transport of the cargoes from Port Arthur LNG.
The announcement represented another step in the Port Arthur LNG liquefaction project’s development. In 2017, Sempra LNG & Midstream signed a memorandum of understanding with Korea Gas Corp. providing a framework for cooperation, including engineering and construction, operations, equity ownership in the Port Arthur project, and off-take of LNG. The ultimate participation of KoGas and PGNiG in the project remains subject to finalization of definitive agreements, Sempra said.
Contact Nick Snow at [email protected].
