Sempra Energy will supply 1 million tons per annum of liquefied natural gas (LNG) from its Port Arthur LNG Phase 1 project to Poland's PKN ORLEN S.A. for 20 years, Report informs referring to Reuters.
The deal is the latest in a series of long-term contracts for US LNG after Western sanctions on major producer Russia following its invasion of Ukraine squeezed an already-tight global supply.
Sempra last year also struck deals with ConocoPhillips, INEOS, ENGIE and Germany’s RWE for the sale and purchase of LNG from the proposed Phase 1 project.
With this supply deal with PKN ORLEN, which recently acquired the Polish Oil & Gas Co, Sempra’s Port Arthur LNG Phase 1 is fully subscribed with 10.5 Mtpa under binding long-term agreements, the company said.
Sempra will now focus on completing the remaining steps needed to achieve making a final investment decision for the Port Arthur LNG Phase 1 project in the first quarter of 2023, with first cargo deliveries expected in 2027.