US company Sempra LNG has signed a memorandum of understanding (MoU) with the Polish Oil & Gas Company (PGNiG) for the purchase of 2 million tpa of LNG from Sempra’s North American projects.
PGNiG had originally signed a 2 million tpa sale and purchase agreement with Sempra LNG specifically for the 11 million tpa Port Arthur LNG project in Texas. However, in June 2021, an interim participation agreement between Sempra Energy and Aramco for the Port Arthur LNG export project in Texas, US, expired without a final deal and the company said it was re-evaluating its ambitions for gas. Sempra CEO Jeffrey Martin said then that PGNiG deal, signed in December 2018, may be moved. The new deal allows PGNiG to buy gas from any of Sempra’s North American LNG portfolio.
Under the terms of the MoU, Sempra LNG and PGNiG will also develop a framework for the reporting, mitigation and reduction of greenhouse gas emissions throughout the LNG value chain.
‘We highly value our relationship with Sempra LNG and we are keen to continue it. The MoU allows for shifting the volumes originally contracted at Port Arthur LNG to other facilities from Sempra’s projects portfolio,’ says Paweł Majewski, CEO of PGNiG. ‘We are also determined to curb the carbon footprint of fuels offered by PGNiG and are convinced that our cooperation with LNG producers like Sempra LNG will contribute to reach this goal most effectively.’
Sempra LNG CEO Justin Bird says that his company is looking to extend its LNG business to include net-zero solutions and that working with companies like PGNiG to advance best practices in greenhouse gas mitigation can build on the global environmental benefits of substituting higher-emission fuels with lower-carbon LNG and drive down US natural gas value chain emissions.