Sempra LNG and PGNiG sign MoU for LNG capacity from North American LNG portfolio

Source: press release, 27 July 2021

Energía Costa Azul regasification terminal in Baja California, Mexico
Energía Costa Azul regasification terminal in Baja California, Mexico (photo: IEnova)

Sempra LNG has announced that it has entered into a memorandum of understanding (MoU) with the Polish Oil & Gas Company (PGNiG) for the potential purchase of approximately 2 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from Sempra LNG’s portfolio of projects in North America. As part of the MoU, Sempra LNG and PGNiG are also working toward a framework for the reporting, mitigation and reduction of greenhouse gas (GHG) emissions throughout the LNG value chain.

“We look forward to continuing to work with PGNiG to help meet their energy objectives from our strategically positioned LNG facilities and development projects on the Gulf and Pacific Coasts of North America,” says Justin Bird, chief executive officer of Sempra LNG. “As we look to extend our LNG business to include net-zero solutions, working with companies like PGNiG to advance best practices in GHG mitigation can build on the global environmental benefits of substituting higher-emission fuels with lower-carbon LNG while also continuing to drive down emissions in the U.S. natural gas 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, chief executive officer of PGNiG SA. “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.”

The MoU is non-binding and was completed in connection with the termination of the parties’ sale and purchase agreement (SPA) signed in 2018 that provided for 2 Mtpa of LNG supply to be delivered from the Port Arthur LNG project.

Sempra LNG owns a 50.2% interest in Cameron LNG, a 12-Mtpa export facility operating in Hackberry, Louisiana (Phase 1), and is working with Cameron LNG on a proposed expansion of the facility through one additional liquefaction train with an offtake capacity of over 6 Mtpa.

Sempra LNG, IEnova and TotalEnergies are building the 3-Mtpa ECA LNG project in Baja California, Mexico. Phase 1 of the project is under construction and first production of LNG is expected by the end of 2024. A potential expansion project is in the early stages of development.

Sempra LNG is also developing additional LNG facilities and carbon sequestration infrastructure along the LNG value chain on the Gulf and Pacific Coasts of North America.