Petrochemicals firm INEOS has signed a 20-year contract with Sempra Infrastructure for the supply of approximately 1.4 million tonnes per annum (Mtpa) of LNG from Phase 1 of the Port Arthur LNG facility under development in Texas
INEOS also signed a non-binding head of agreement (HOA) for the potential purchase of an additional 0.2mtpa from the Port Arthur LNG Phase 2 project also under development.The first deliveries are expected in 2027.
Recently, Sempra tied up another supply deal for the Port Arthur project when it inked a 20-year sale and purchase agreement for 5 mtpa of LNG from Phase 1 of the project.
In July, INEOS also signed a contract for long-term regasification capacity in the proposed LNG Terminal in Brunsbuettel, Germany.
These agreements mark INEOS’ entry into the global Liquified Natural Gas (LNG) market. The company is a first mover among European corporates as it secures competitive sources of energy to meet its own needs and those of its customers in Europe, as part of the energy transition.
INEOS Energy Chairman Brian Gilvarysaid, “This long-term contract with Sempra Infrastructure and the agreement of regasification capacity in Brunsbuettel, secures the key areas of the value chain for INEOS across the Atlantic corridor and represents a major step forward in the INEOS Energy journey, at a time of significant transformation in the energy industry.”
The regasification facility in Brunsbuettel, Germany, will have an annual throughput capacity of 8 billion cubic metres (Bncma) of natural gas and can be expanded to at least 10Bncma. German LNG has executed the Engineering Procurement and Construction Contract and has entered into agreements with foundation customers INEOS, ConocoPhillips and RWE for long-term regasification capacity in the terminal. It is now focusing on securing the final permits to fully develop the terminal.
Sempra Infrastructure CEO Justin Bird commented “We are excited to finalise our commercial relationship with INEOS as a valued long-term LNG off-taker for the Port Arthur LNG Phase 1 development project.”
“We look forward to advancing this project so we can begin delivering new supplies of U.S. LNG to our European partners, as they pursue more secure energy for their customers.”
