PGNiG has terminated a deal with U.S. firm Sempra Energy for LNG supplies from the Texas Port Arthur project due to delays, Poland’s biggest gas company said on July 27.
State-run PGNiG signed a 20-year agreement with Sempra in 2018, as part of its bigger plan to cut reliance on gas imports from Russia. PGNiG was to receive around 2 million tonnes of LNG per year under the deal, starting from 2023.
Sempra said in May it would probably move its planned final investment decision (FID) on the Port Arthur LNG export plant in Texas from 2021 to 2022.
“The decision was made due to delays in the project’s development,” PGNiG said in a statement.
PGNiG also signed a memorandum with Sempra under which it could potentially receive the volumes originally contracted at Port Arthur from other Sempra facilities.
The Polish company said it signed agreements to increase LNG purchases from U.S. company Venture Global LNG by 2 million tonnes a year to 5.5 million tonnes.
Under Poland’s ruling Law and Justice (PiS) party, Warsaw has deepened its energy cooperation with the U.S. It agreed to buy more U.S. LNG and also hopes the United States will help it build and finance its first nuclear power plant.
But PiS relations with Washington have weakened since Joe Biden won the U.S. presidential election.
Poland opposed the waiver of U.S. sanctions on the company behind Russia’s Nord Stream 2 and condemned a U.S. deal with Germany over the project. Under that deal between Washington and Berlin, Russia would face penalty costs if Moscow used the new pipeline to harm Ukraine or other eastern European countries.
Recommended Reading
EIG Refinances $11B in Senior Debt for Aramco Pipeline Deal
2024-07-07 - EIG subsidiary Pearl Pipelines will use the proceeds to repay financing related to its $25.3 billion acquisition of 49% interest in Aramco Oil Pipelines Co. three years ago.
Energy Transfer Confirms La Porte Fire, Report of 'Unknown' Vehicle
2024-09-16 - Energy Transfer acknowledged reports of a vehicle striking a valve on a natural gas liquids line, potentially leading to a large fire in La Porte, Texas, on the morning of Sept. 16.
AltaGas Prices $900MM Junior Notes Offer After Tidewater Deal
2024-09-17 - The offering follows AltaGas’ Aug. 31 announcement that it acquired multiple midstream, storage and terminals from Tidewater Midstream and Infrastructure Ltd. for CA$650 million (US$480 million).
Brazos Completes Permian G&P Plant, Announces Another
2024-08-15 - Privately held Brazos Midstream completed a 200 MMcf/d cryogenic gas processing plant in the Midland Basin and plans to build a larger gas processing plant in the second half of 2025.
New Fortress’ FLNG Asset Achieves First LNG Offshore Mexico
2024-07-19 - New Fortress Energy’s Fast LNG asset has a production capacity of 1.4 million tonnes per annum.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.