PGNiG has signed the agreements with Port Arthur LNG and Venture Global LNG. Both US companies are building natural gas liquefaction facilities in the Gulf of Mexico, expected to be commissioned in 2022 and 2023. 

PGNiG is in the process of carrying out detailed legal and technical analyses of the projects. At the same time, talks will be held on the terms of binding LNG purchase contracts, under which PGNiG would receive 2 million tonnes of LNG annually from each of its US partners, which, after regasification, would produce a total of approximately 5.5 bcm of natural gas. 

“It is a major step for PGNiG on the way to expand its LNG market presence. First and foremost, the agreements will allow us to further diversify the sources of LNG imports to Poland, particularly after the Yamal contract expires in 2022,” said Piotr Woźniak, President of the Management Board of PGNIG SA. “Secondly, we want to purchase US LNG to expand our trading portfolio. The volumes offered by our US partners will enable us to expand our trading operations on global LNG markets,” Piotr Woźniak added.

“We are thoroughly analysing future LNG export capabilities of other US producers and are planning for new contracts well ahead of time. Our US partners are able to offer us competitive prices and flexible terms of business. We decided to buy LNG on a FOB basis this time to be able to freely move the commodity on global markets,” said Maciej Woźniak, Vice President of the PGNiG Management Board for Trade.

Relevant documents were signed at the World Gas Conference held in Washington. 

It is important to note that in order to achieve its strategic objectives, PGNiG has been holding talks with many other potential LNG producers and suppliers. 

The agreements signed today provide for the purchase of LNG on a free-on-board basis, which means that the seller will be required to deliver the cargo on board a ship at the port of loading. Beyond that point, the responsibility for the cargo and shipping cost will rest with the buyer, giving it the ability to flexibly trade the LNG cargoes on global markets. The previously signed LNG supply contracts provided for delivered-ex-ship (DES) shipments, meaning that the seller was required to deliver LNG to the port of destination, pay for the transport and bear all related risk. 

Port Arthur LNG, a company owned by Sempra LNG & Midstream, expects its Texas-based terminal will begin commercial operations in 2023.
 
Venture Global LNG plans to load its first cargoes on LNG tankers at the Calcasieu Pass terminal in 2022 and at the Plaquemines terminal in 2023. Both facilities will be located in Louisiana. 

Representatives of both US companies have stressed that by becoming a key customer for their new projects, PGNiG has joined the group of the world’s largest gas companies.

The Sempra Energy Group, based in San Diego, California, is listed on the New York Stock Exchange and included in the Fortune 500 list. It reported over USD 11bn in revenue for 2017. The Sempra Energy Group companies employ about 20,000 staff and serve over 40 million customers worldwide. 

Venture Global LNG, based in Arlington, Virginia, is developing two LNG export facilities located on the coast of the US Gulf of Mexico. The Calcasieu Pass facility and the Plaquemines facility will have an annual export capacity of 10 million tonnes and 20 million tonnes of LNG, respectively. Venture Global has raised USD 525m of capital to-date to support the development of its projects.