INEOS has signed a 20-year contract with Sempra Infrastructure to supply approximately 1.4 million tonnes per annum (mtpa) of liquefied natural gas (LNG).
The British chemicals company will supply the LNG from Phase 1 of the Port Arthur LNG facility, which is currently under development.
In addition, INEOS has signed a non-binding agreement for an additional 0.2mtpa from Phase 2 of the Port Arthur LNG project, which is also currently under development.
The fully-permitted Port Arthur LNG facility is located on a site spanning 3,000 acres of area in Jefferson County, Texas.
The facility is planned to have two natural gas liquefaction trains, LNG storage tanks, and related facilities to produce around 13.5mtpa of LNG, under optimal conditions.
Sempra Infrastructure CEO Justin Bird said: “We are excited to finalise our commercial relationship with INEOS as a valued long-term LNG off-taker for the Port Arthur LNG Phase 1 development project.
“We look forward to advancing this project so we can begin delivering new supplies of US LNG to our European partners, as they pursue more secure energy for their customers.”
In July this year, INEOS signed a contract for long-term regasification capacity in a proposed German LNG Terminal in Brunsbuettel, Germany.
The Brunsbuettel LNG Terminal will have an annual throughput capacity of eight billion cubic metres (bcm) of natural gas and can be expanded to at least 10bcm.
German LNG has executed the EPC contract and has also signed agreements for long-term regasification capacity with ConocoPhillips and RWE, alongside INEOS.
The agreements indicate its entry into the LNG market, and provide essential security for the energy markets in Europe, said the chemicals company.
INEOS Energy CEO David Bucknall 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.”
INEOS Energy chairman Brian Gilvary said: “This long-term contract with Sempra Infrastructure and the agreement for regasification capacity in Brunsbuettel, secures the key areas of the value chain for INEOS across the Atlantic corridor.”
