INEOS Energy has signed a Heads-of-Agreement with Sempra Infrastructure for the potential supply of 1.4mn tonnes per annum of LNG from North America for 20 years, marking its entry into the global LNG market.
INEOS - a global manufacturer of petrochemicals, speciality chemicals and oil products which are supplied by 36 separate businesses - intends to build partnerships with other industrial users of energy in Europe to help them access the same competitive sources of energy.
Brian Gilvary, Chairman INEOS Energy said, the agreement represents a major step forward for INEOS Energy, at a time of significant transformation in the energy industry.
"Our entry into the global LNG market opens new opportunities to supply affordable, clean and reliable energy to the market," he said. "Long term supply from INEOS Energy will help alleviate the structural energy issues in Europe.”
The Port Arthur LNG development project is a 13.5Mtpa, fully permitted facility on a 3,000 acre site in Jefferson County, Texas. In addition, Sempra Infrastructure has signed an HOA with the Cameron LNG partners for the development of the proposed 6.75-Mtpa Cameron LNG Phase 2 project in Hackberry, Louisiana.
David Bucknall, CEO INEOS Energy said, Sempra Infrastructure will bring significant expertise in construction and operation of LNG facilities. "This agreement is an important part of our strategy as we build a network of liquefaction, shipping, and regasification capacity to deliver affordable, cleaner and reliable energy to our businesses and customers in Europe and around the world," he said.
INEOS aims to be net zero by 2050 across its operations and 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.
“INEOS is one of Europe’s largest end-users of natural gas and we look forward to building a long-term relationship with a company that shares our vision of increasing the world’s energy security while simultaneously advancing lower-carbon energy sources,” said Justin Bird, CEO of Sempra Infrastructure.
“This HOA demonstrates our ongoing momentum in advancing our next generation of LNG export facilities with an eye toward supplying US natural gas to some of the world’s leading energy and manufacturing companies.”
The agreement is a preliminary non-binding arrangement, and the development of the Port Arthur LNG and Cameron LNG Phase 2 projects are subject to securing all necessary permits, signing engineering and construction contracts, obtaining financing and a final investment decision.