One of Central Europe’s leading utilities, Polish Oil & Gas Co. (PGNiG), on Tuesday agreed to take natural gas exports over 20 years from two separate proposed projects that would be sited in Louisiana and Texas.
PGNiG secured one contract to buy 2 million metric tons/year (mmty) of liquefied natural gas (LNG) from Venture Global LNG’s two planned Louisiana projects -- Calcasieu Pass, set to ramp up in 2022, and Plaquemines LNG, set for 2023 start up.
Port Arthur LNG, a subsidiary of Sempra LNG & Midstream, also has an agreement to sell 2 mmty from its planned liquefaction facility on the Texas coast that is expected to begin operations in 2023.
The contracts were signed at the World Gas Conference (WGC) underway in Washington, DC.
PGNiG would be joining Venture’s existing global partners in Calcasieu Pass, which are Royal Dutch Shell plc, Edison SpA, Galp and BP plc, “and become one of our foundation partners for Plaquemines LNG,” said Venture Co-CEOs Mike Sabel and Bob Pender.
Calcasieu Pass only days ago secured a draft environmental impact statement from the Federal Energy Regulatory Commission. The project, to be built on a 930-acre site in Cameron Parish, LA, calls for facilities with production capacity of 12 mmty. A 23.4 mile-long, 42-inch diameter pipeline also is to be built to feed gas to the site. VGCP and TransCameron filed a joint application for authorization of Calcasieu Pass in September 2015.
VGCP already has 20-year sales and purchase agreements (SPA) for 2 mmty each with BP and Shell NA LNG LLC, and SPAs for 1 mmty each with Italy's Edison and Portugal's Galp.
In addition, Plaquemines LNG requested authorization last year to export up to 24 mmty of LNG.
The proposed Port Arthur liquefaction project is being developed in Jefferson County, TX, and is designed to export up to 11 mmty. Last year, Sempra LNG signed a memorandum of understanding with Korea Gas Corp., (Kogas) providing a framework for cooperation, including engineering and construction, operations, equity ownership and LNG offtake.
Earlier this month Bechtel was selected by Port Arthur LNG as the engineering, procurement, construction and commissioning contractor. The ultimate participation of Kogas and PGNiG still requires agreements to be finalized.
Port Arthur is “one of three major LNG export projects Sempra Energy is developing in North America to meet the demand of global markets, including Poland,” said Sempra COO Joseph A. Householder. “This agreement, along with PGNiG’s financial strength and experience in delivering natural gas to customers, are important to advancing the Port Arthur liquefaction project.”
PGNig CEO Piotr Wozniak said the agreements help to define the company’s LNG portfolio for the near term.
“PGNiG is constantly looking for market offers to purchase natural gas at competitive prices,” he said.