Polish Oil and Gas Company (PGNiG) and the U.S. company Port Arthur LNG, a subsidiary of Sempra Energy, have signed a 20-year contract for the sale and purchase of liquefied natural gas, according to PGNiG on late Wednesday.
The agreement stipulates that PGNiG will buy 2 million tonnes of LNG annually, and approximately 2.7 billion cubic meters (bcm) after regasification.
The purchases will commence in 2023 from the Port Arthur LNG terminal, which will be built in Jefferson County, Texas off the coast of the Gulf of Mexico.
Port Arthur LNG will manage gas pipeline transportation, liquefaction processing and cargo loading, giving PGNiG flexibility in cargo management.
PGNiG plans to deliver cargoes to domestic customers in Poland or trade LNG on the global market, once operations commence.
"This agreement marks an important step toward Poland’s energy independence and security," commented the U.S. Secretary of Energy Rick Perry.
"The Trump Administration remains committed to increasing energy diversity, advancing energy security, strengthening national security, and creating a future of prosperity and opportunity in Poland and throughout the region," Perry said.
"Our activities show that we consistently implement our strategy. Another long-term contract not only allows us to develop a 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," commented Piotr Wozniak, president of PGNiG.
Port Arthur LNG will act as the operator of the terminal being built in Texas. The Port Arthur liquefaction-export facility will include two natural gas liquefaction trains capable of processing approximately 11 million tonnes per annum of LNG, up to three LNG storage tanks, two marine berths, and associated facilities.
Sempra Energy has so far signed agreements on the use of its LNG projects in the Gulf of Mexico and on the west coast of Mexico.
Among the partners of the U.S. company - alongside PGNiG - are Total, Mitsui, Mitsubishi, Tokyo Gas Company and Korea Gas Corporation.
In aggregate, the projects potentially represent more than 45 million tonnes per annum of LNG export capacity from North America.
In addition to this agreement, on Nov. 8, PGNiG and Cheniere signed a 24-year agreement for LNG supplies from the U.S.
According to this agreement, in 2019-2022 the volume of supplies will total approximately 0.52 million tonnes of LNG, or approx. 0.7 bcm of natural gas after regasification, while in the period of 2023-2042, the total import volume will reach 29 million tonnes of LNG, which equals approx. 39 bcm of natural gas after regasification.
By Murat Temizer