UK chemical firm Ineos has signed a 20-year contract with Sempra Infrastructure for the supply of approximately 1.4 million tonnes/year (mtpa) of Liquified Natural Gas (LNG) from Phase 1 of the Port Arthur LNG facility under development in Texas, North America.
Under the agreement Ineos has agreed to purchase approximately 1.4 mtpa and has also signed a non-binding heads of agreement (HOA) for the potential purchase of an additional 0.2 mtpa 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 Ineos’s entry into the global 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.
The agreements come at a critical time for energy markets and will provide much needed security of supply for Europe.
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 metres (bcma) of natural gas and can be expanded to at least 10 bcma.
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 focussing on securing the final permits to fully develop the terminal.
David Bucknall, CEO Ineos Energy said, “We are delighted to have Sempra Infrastructure and German LNG as long-term partners bringing significant expertise in 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.
Ulco Vermeulen, member of the Executive Board of Gasunie is extremely pleased that Ineos has been able to successfully conclude a long-term LNG supply with Sempra for the land-based LNG import terminal in Brunsbuttel.
“This LNG supply contract between INEOS and Sempra Infrastructure , ensures good 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 start construction of the German LNG terminal in Brunsbuettel soon.” he said.
Ineos says it is committed to achieving net zero by 2050 across its operations. The company is working to decarbonise the supply chain through carbon capture and storage and provide optionality for alternative sources of energy such as its leadership in the production of hydrogen, as we develop them over time.