INEOS signs 1.4 mtpa LNG deal with Sempra Infrastructure
London-based energy player INEOS has signed a deal with U.S. LNG company Sempra Infrastructure for the potential supply of 1.4 million tonnes per annum (mtpa) of LNG for 20 years.
With this, building on its position exporting ethane from the U.S., INEOS marked its entry into the global LNG market. This heads-of-agreement with Sempra is to provide 1.4 mtpa of LNG export from the U.S. Gulf Coast for 20 years.
INEOS Energy Trading will market the LNG into global markets as well as supply its own industrial needs in Europe. The company said the agreement comes at a critical time for energy markets and will provide much-needed security of supply.
LNG will be delivered free-on-board, from either the proposed Port Arthur LNG Phase 1 project or the Cameron LNG Phase 2 projects.
The Port Arthur LNG development project is a 13.5 mtpa, fully permitted facility in Jefferson County, Texas. In addition, Sempra Infrastructure has signed an HOA with the Cameron LNG partners for the development of the proposed 6.75 mtpa Cameron LNG Phase 2 project in Hackberry, Louisiana.
In addition, INEOS said it intends to build partnerships with other industrial users of energy in Europe to help them access the same sources of energy.
Brian Gilvary, chairman INEOS Energy, said, “Our entry into the global LNG market opens new opportunities to supply affordable, clean, and reliable energy to the market. Long-term supply from INEOS Energy will help alleviate the structural energy issues in Europe.”
David Bucknall, CEO INEOS Energy, said, “This agreement is an important part of our strategy as we build a network of liquefaction, shipping, and regasification capacity to deliver affordable, cleaner and reliable energy to our businesses and customers in Europe and around the world.”
INEOS claims it is committed to achieving net-zero by 2050 across its operations. It is working to decarbonise the supply chain through carbon capture and storage and provide optionality for alternative sources of energy such as the production of hydrogen.
Justin Bird, CEO of Sempra Infrastructure, added: “This HOA demonstrates our ongoing momentum in advancing our next generation of LNG export facilities with an eye toward supplying U.S. natural gas to some of the world’s leading energy and manufacturing companies.”
The deal is a preliminary non-binding arrangement. The development of the Port Arthur LNG and Cameron LNG Phase 2 projects are subject to securing all necessary permits, including the final investment decision.