INEOS Strike 20-Year LNG Deal With U.S. Sempra

INEOS has entered a 20-year sale and purchase agreement with U.S. Sempra Energy for approximately 1.4 million tonnes per annum of LNG delivered FOB from the proposed Port Arthur LNG project or Cameron LNG Phase 2 project based on a joint statement out today.

• It is INEOS's first entry into the global LNG market, with the volumes intended both for trading and supplying of INEOS' own industrial needs in Europe.
• The deal is still a preliminary non-binding arrangement subject to the two LNG projects securing all necessary permits
• Sempra is working to expand its Gulf Coast LNG asset base through the simultaneous development of the Port Arthur LNG project in Jefferson County, Texas, and the proposed expansion of the Cameron LNG facility in Hackberry, Louisiana.
• In addition to the 1.4 Mtpa HOA with INEOS, last month Sempra Infrastructure announced an HOA with the Polish Oil & Gas Company (PGNiG) for 2 Mtpa from Cameron LNG Phase 2 and 1 Mtpa from Port Arthur LNG, with an option for PGNiG to reallocate the Cameron LNG Phase 2 volumes to Port Arthur LNG. Sempra Infrastructure also recently announced an HOA with RWE Supply and Trading for 2.25 Mtpa from the Port Arthur LNG project.
• European demand for US LNG has intensified as the region looks for alternative sources to Russian gas.