Jeff Hayes: Poland-Port Arthur pact promotes LNG project

Published 11:19 am Monday, December 24, 2018

In March of this year, representatives of Poland’s Ministry of Energy, maritime officials and representatives of Poland’s LNG company traveled to Port Arthur to sign a joint declaration of cooperation with officials from the Greater Port Arthur Chamber of Commerce, Port of Port Arthur, Sabine Neches Navigation District and Sabine Pass Port Authority to expand trade opportunities between the United States and Poland.

In less than a year, the declaration, which was signed in the spirit of friendship and cooperation, for Southeast Texas to become Poland’s partner in developing energy security, has helped to pave the way for Port Arthur to become a leader in LNG supply to Eastern Europe and other parts of the world.

In June, Polish Oil & Gas Co. — PGNiG — and Sempra Energy’s Port Arthur LNG — PALNG — entered into an agreement regarding the terms of delivery of liquefied natural gas from the proposed Port Arthur LNG liquefaction facility. This week these companies took a major step with the signing of a contract in which PGNiG will become PALNG’s long-term buyer of LNG.

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This definitive agreement with PGNiG will help advance the Port Arthur LNG export-project as one of the premier suppliers of LNG to Poland and other growing markets around the world and strengthen the Port Arthur area’s position on the global energy stage.

This is a profound step for the energy independence of Poland. Although not attending the signing ceremony, U.S. Secretary of Energy Rick Perry acknowledged the agreement’s importance stating: “This agreement marks an important step toward Poland’s energy independence and security. As demonstrated with the launch of the Strategic Dialogue on Energy in Poland last month, the Trump administration remains committed to increasing energy diversity, advancing energy security, strengthening national security and creating a future of prosperity and opportunity in Poland and throughout the region.”

Sempra’s chief executive officer, Jeff Martin recently wrote in a Dallas Morning News column jointly authored with U.S. Sen. Ted Cruz, R-Texas, the proposed Port Arthur LNG project will be a critical fuel supplier for one of America’s strongest European allies. The agreement between Poland and Port Arthur LNG is not simply a business opportunity: It represents a critical aspect of our two countries’ continuing strategic alliance.

From an economic development perspective, the multi-billion-dollar Port Arthur LNG Project will bring new jobs and taxes directly to the city, school, county, state and country. The 3,500 construction jobs and 200 permanent jobs will support existing local retail and service businesses such as restaurants, hotels, etc. and attract new business to the area.

As 2018 comes to an end, seeing the Port Arthur LNG agreement move forward is a wonderful gift that will help advance the project and provides the economic and job benefits to our regions. We look forward to seeing even more agreements such as this one with PGNiG in 2019.

Jeff Hayes is chairman of the Greater Port Arthur Chamber of Commerce.