Sempra LNG And PGNiG Sign MOU For LNG Capacity From North American LNG Portfolio
- Companies to collaborate to transition prior 2 Mtpa LNG SPA with Port Arthur LNG to Sempra LNG's portfolio of projects
- Sempra LNG and PGNiG to work toward development of GHG reporting and mitigation agreements for LNG cargoes
Jul 27, 2021
SAN DIEGO, July 27, 2021 /PRNewswire/ -- Sempra LNG today 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," said 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," said 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.
About Sempra LNG
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.
In this press release, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "target," "outlook," "maintain," "continue," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.
Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: decisions, investigations, regulations, issuances or revocations of permits and other authorizations, and other actions by (i) the U.S. Department of Energy and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; actions to reduce or eliminate reliance on natural gas and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance, may be disputed by insurers or may impact our ability to obtain satisfactory levels of affordable insurance; cybersecurity threats to the storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; volatility in foreign currency exchange, inflation and interest rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra Energy's website at www.sempra.com. Investors should not rely unduly on any forward-looking statements.
Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not the same company as San Diego Gas & Electric or Southern California Gas Company, and Sempra LNG, Cameron LNG, Port Arthur LNG and ECA LNG are not regulated by the California Public Utilities Commission.
SOURCE Sempra LNG
For further information: Media, Paty O. Mitchell, mediaLNG@sempraglobal.com, Twitter: @SempraLNGM; Financial, Lindsay Gartner, Sempra Energy, (877) 736-7727, firstname.lastname@example.org