Ineos Signs 20-Year LNG Supply Deal With Sempra
Energy company Ineos has signed a 20-year contract with Sempra for the supply of 1.4 million tons per annum (mtpa) of LNG from the Port Arthur Phase 1 LNG facility under development in Texas.
Under the agreement, Ineos has agreed to purchase 1.4 mtpa and has also signed non-binding heads of agreement for the potential purchase of an additional 0.2mtpa from the Port Arthur LNG Phase 2 project under development. The first deliveries are expected in 2027.
In July, Ineos also signed a contract for long-term regasification capacity in the proposed German LNG Terminal in Brunsbuettel, Germany. These agreements mark the company’s entry into the global LNG market. The agreements come at a critical time for energy markets and will provide much-needed security of supply for Europe.
“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,” Brian Gilvary Chairman of Ineos Energy said.
The Port Arthur LNG project is a fully permitted facility on a 3,000-acre site in Jefferson County, Texas. It is expected to include two natural gas liquefaction trains and LNG storage tanks and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 mtpa of LNG.
The German LNG Terminal is a planned regasification facility in Brunsbuettel, Germany, that will have an annual throughput capacity of 8 billion cubic meters of natural gas and can be expanded to at least 10 bcma. German LNG has agreed 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.
“We are delighted to have Sempra Infrastructure and German LNG as long-term partners bringing significant expertise in the construction and operation of LNG facilities. These agreements are an important part of our strategy as we build a network of liquefaction, shipping, and regasification capacity to deliver affordable and reliable energy to our businesses and customers globally.”
“We are excited to finalize our commercial relationship with INEOS as a valued long-term LNG off-taker for the Port Arthur LNG Phase 1 development project,” said Justin Bird CEO of Sempra Infrastructure. “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,” David Bucknall, CEO of Ineos Energy, said.
"This LNG supply contract between Ineos and Sempra Infrastructure ensures continuity and stability in supplying LNG volumes to Germany on a long-term basis. We are excited that INEOS has secured its LNG supply and look forward to starting construction of the German LNG terminal in Brunsbuettel soon,” Ulco Vermeulen, member of the Executive Board of Gasunie, said.
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