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.

Most Popular

Shell ships first LNG Canada cargo

LNG giant Shell and its partners have shipped the first cargo produced at the LNG Canada facility in Kitimat, on the west coast of Canada.

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

More News Like This

Japan’s Jera seals US LNG supply deals

Japan's power firm and LNG trader Jera has signed 20-year agreements to buy up to 5.5 million tonnes per year of LNG from the United States. The deals include an SPA with Commonwealth LNG and the previously announced SPA with NextDecade, as well as heads of agreements with Sempra Infrastructure and Cheniere.

Sempra advances Port Arthur LNG construction

US LNG exporter Sempra and compatriot Bechtel continue to make progress with construction work on the first phase of the Port Arthur LNG export terminal in Texas.

Sempra gets non-FTA approval for Port Arthur LNG expansion

Sempra Infrastructure, a unit of Sempra, has received non-FTA approval from the US Department of Energy for the second phase of its Port Arthur LNG export project in Texas.

Sempra’s ECA LNG export project starts pre-commissioning activities

Sempra's Energia Costa Azul LNG export terminal in Mexico is ready to start pre-commissioning activities, according to Karen Sedgwick, Sempra’s executive VP and CFO.