Ineos inks deal with Sempra to buy US LNG

Ineos Energy, a unit of UK’s Ineos, is looking to buy about 1.4 million tonnes per year of LNG from Sempra Infrastructure’s liquefaction and export plants in the US.

In that regard, the two firms signed a heads of agreement for FOB volumes, according to a statement by Sempra Infrastructure, a unit of US LNG player Sempra, on Wednesday.

The HOA provides the framework for the negotiation and finalization of a definitive 20-year LNG sale and purchase agreement, it said.

Also, the volumes would come from the proposed Port Arthur LNG project under development in Texas, or the Cameron LNG Phase 2 project in Louisiana, according to Sempra.

Sempra is working to expand its Gulf Coast LNG asset base through the simultaneous development of the Port Arthur LNG project, as well as the proposed expansion of the Cameron LNG facility.

Ineos joins the company’s growing portfolio of global energy and manufacturing companies that have recently executed HOAs for potential long-term offtake from these projects.

Last month Sempra signed a deal with PGNiG and also recently announced a contract with RWE Supply and Trading.

The HOAs are preliminary non-binding arrangements, and the development of the Port Arthur LNG and Cameron LNG Phase 2 projects remain subject to a number of risks and uncertainties, including reaching a final investment decision, Sempra said.

Ineos enters LNG market

The long-term agreement marks Ineos’ entry into the global LNG market, and builds on the company’s “leadership position” in exporting ethane from the US, Ineos Energy said in a separate statement.

In addition, Ineos said the agreement comes at a “critical time” for energy markets and would provide much needed security of supply.

The firm intends to market the LNG supplies into global markets as well as supply its own industrial needs in Europe.

“Ineos intends to build partnerships with other industrial users of energy in Europe to help them access the same competitive sources of energy. It is the first market entrant to operate in this way in many years,” it said.

- Advertisements -

Most Popular

Charif Souki steps down as chairman of Tellurian

US LNG firm Tellurian, the developer of the Driftwood LNG export project in Louisiana, said on Friday that its...

QatarEnergy, ExxonMobil expect first LNG from Golden Pass plant in H1 2025

Energy giants QatarEnergy and ExxonMobil are expecting to start LNG production at their Golden Pass LNG export terminal on...

Dynagas FSRU ready to start Stade job

The 174,000-cbm FSRU Transgas Force, owned by Dynagas, has left Germany's Bremerhaven and will now work as an LNG...

More News Like This

Sempra makes management changes

US LNG exporter Sempra revealed updates to its officer team with a view toward strengthening the company's existing management...

Sempra: Port Arthur LNG construction continues under existing permits

Sempra Infrastructure, a unit of Sempra, said it is continuing construction on the first phase of its Port Arthur...

Sempra Infrastructure appoints new president

US LNG player Sempra Infrastructure, a unit of Sempra, has appointed Tania Ortiz Mena as its new president. In this...

Sempra gets FERC OK for Port Arthur LNG expansion

LNG player Sempra Infrastructure, a unit of Sempra, won regulatory approval from the US FERC for the second phase...