Sempra Infrastructure and PKN ORLEN sign SPA for Port Arthur LNG
Sempra Infrastructure, a subsidiary of Sempra, announced it has entered into a long-term sale and purchase agreement (SPA) with PKN ORLEN S.A., which recently acquired the Polish Oil & Gas Company (PGNiG), for the supply of liquefied natural gas (LNG) from the Port Arthur LNG Phase 1 project under development in Jefferson County, Texas. With this agreement, the projected LNG off-take capacity for the Phase 1 project is now fully subscribed under binding long-term agreements.
Under the SPA, PKN ORLEN has agreed to purchase approximately 1 MMtpy of LNG from the Port Arthur LNG Phase 1 project on a free-on-board basis for 20 years.
"We are excited to partner with PKN ORLEN, Central Europe's largest energy group, as they continue to look for long-term, diverse supplies of secure energy sources," said Justin Bird, CEO of Sempra Infrastructure. "With the long-term off-take capacity for Phase 1 now sold under binding agreements, we expect to reach FID later this quarter and commence construction on the Port Arthur LNG Phase 1 project to help meet the increasing demand for LNG across Europe and the rest of the world."
"We are delighted to enter into this long-term agreement with Sempra Infrastructure. This is an important step towards strengthening PKN ORLEN's position as a cornerstone of crude and fuel supply security in Central and Eastern Europe," said Daniel Obajtek, CEO of PKN ORLEN. "Already last year, during a very tense situation on the EU energy market, the United States became one of the main suppliers of natural gas to Poland. By establishing a partnership with Sempra Infrastructure, we are increasing the diversification of our import portfolio and we are securing additional volumes of natural gas, which will be used both to provide for the needs of the Polish customers and to enhance PKN ORLEN's presence in the international energy market."
Sempra Infrastructure has previously announced it has entered into long-term agreements with each of ConocoPhillips, INEOS, ENGIE and RWE for the sale and purchase of LNG from the proposed Phase 1 project. In aggregate, Port Arthur LNG Phase 1 is now fully subscribed with 10.5 MMtpy under binding long-term agreements. The company is focused on completing the remaining steps necessary to achieve its goal of 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.
The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 MMtpy of LNG. A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.
Development of the Port Arthur LNG projects is contingent upon completing the required commercial agreements, securing and/or maintaining all necessary permits, obtaining financing, and reaching a final investment decision, among other factors.
Modern society would not be possible without the use of pipelines to transport natural gas, crude oil and finished products to demand centers.
Optimizing Gas Distribution: Accounting for Changeovers, Regulators, and More
Gas distribution systems are critical to the effective operation of many industrial facilities around the world. Despite the importance of these systems, however, opportunities to improve their performance and cost-effectiveness are often missed or misunderstood. Increasing changeover pressure may seem like a good way to improve system flow, for example, but it often does so at the expense of bottled gas. Adding regulators may help you control supply pressure, but it also adds cost to your system. So, how do you know what the ideal gas distribution setup is for you?
Attend this webinar to:
- Gain a basic understanding of the fluid dynamics that affect pressure control in gas distribution systems, learning to interpret flow curves and recognize phenomena like lockup, droop, and supply pressure effect (SPE)
- Learn how inlet pressure affects regulator performance and when to specify certain regulator types and configurations to effectively control gas system pressures
Understand the inherent trade-offs between gas utilization and flow capacity and how to select both the right changeover pressure and automatic changeover panel design for your operations.
May 4, 2021 10:00 AM CDT