Port Arthur LNG Phase 1 offtake fully subscribed with latest agreement

Sempra Infrastructure has agreed to supply LNG from its 13.5-million tpy Port Arthur LNG Phase 1 project under development in Jefferson County, Tex., to PKN ORLEN SA. With the agreement, the projected LNG offtake capacity for Phase 1 is now fully subscribed under binding long-term agreements, Sempra said in a release Jan. 25.

PKN ORLEN will purchase some 1 million tonnes/year (tpy) of LNG on a free-on-board basis for 20 years to increase diversification of its import portfolio and secure additional volumes of natural gas, “which will be used both to provide for the needs of the Polish customers and to enhance PKN ORLEN's presence in the international energy market,” PKN ORLEAN said.

Sempra Infrastructure has existing long-term agreements with ConocoPhillips, INEOS, ENGIE, and RWE for LNG from the proposed Phase 1 project. In aggregate, Port Arthur LNG Phase 1 is now fully subscribed with 10.5 million tpy under binding long-term agreements.

A final investment decision on the project is expected in this year’s first quarter, with first cargo deliveries expected in 2027.

Port Arthur LNG Phase 1 is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks and associated infrastructure capable of producing, under optimal conditions, up to 13.5 million tpy of LNG. A similarly sized Port Arthur LNG Phase 2 project is under active marketing and development, the company said.