mOSOCW (MRC) -- INEOS has signed a 20-year contract with Sempra Infrastructure for the supply of approximately 1.4 million tonnes per annum (mtpa) of Liquified Natural Gas (LNG) from Phase 1 of the Port Arthur LNG facility under development in Texas North America, said the company.
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 0.2mtpa 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 INEOS’ entry into the global Liquified Natural Gas (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.
Brian Gilvary Chairman, INEOS Energy said, “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."
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 13.5mtpa 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 10bcma. 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.
We remind, INEOS Europe AG and Pacific Gas (Hong Kong) Holdings Co., Ltd, have signed long-term time charter agreements for four 99,000 cbm (cubic metre) VLECs (Very Large Ethane Carriers). The deal will bring INEOS’ ethane fleet to 16 vessels, with eight VLEC and eight Dragon class ethane carriers. With these agreements, INEOS will have a total of six VLECs under time charter with Pacific Gas.