PGNiG: Conclusion of an agreement setting out the key terms on LNG deliveries with Sempra Infrastructure Partners

The Management Board of Polskie Górnictwo Naftowe i Gazownictwo SA (“PGNiG” or the “Company”) announces that on May 16th, 2022 the Company signed an agreement setting out the key terms of the possible long-term contract for the supply of liquefied natural gas (“LNG”) with Sempra Infrastructure Partners.

Under the agreement, the parties will negotiate the provisions of the binding 20-year contract for the purchase of 3 million tonnes of LNG annually (approx. 4,05 billion cubic meters of natural gas after regasification annually). Potential deliveries may be further traded by the Company on international markets and will be made on a free-on-board basis.

Potential deliveries from Sempra Infrastructure Partners are to be made via the liquefaction terminals: Cameron LNG in Louisiana or Port Arthur LNG in Texas, with the first LNG deliveries expected not earlier than in 2027.
The pricing formula is linked to the US Henry Hub gas price plus a liquefaction fee. The signed agreement does not constitute PGNiG’s obligation to sign a final LNG purchase contract.