Poland's Orlen signs long-term LNG deal with US's Sempra

Marcin Obara/PAP

PKN Orlen, Poland's leading oil and gas company, has signed a 20-year contract with the American company Sempra Infrastructure for the delivery of 20 million tonnes of liquefied natural gas (LNG).

Under the deal, Sempra Infrastructure will deliver one million tonnes of LNG every year for twenty years, Orlen CEO Daniel Obajtek said at a press conference on Wednesday and added that the agreement "secures increased use of natural gas in Poland and in the region."

The annual amount of imported LNG will be turned into 1.3 billion cubic metres (bcm) of gas after the regasification process in Poland.

According to Obajtek, the first deliveries will start in 2027 and the contract is in the free-on-board format, meaning that the buyer is responsible for the collection and transport of LNG from the Port Arthur terminal in Texas.

The latest deal raises the volume of Orlen's contracts with US LNG suppliers to nearly 8 million tonnes of liquefied natural gas a year.

Orlen said in a Wednesday statement that it was developing its own fleet of eight chartered gas tankers, with the first two vessels starting operation this year and the whole fleet being complete in 2025.