Ineos Energy has signed a heads of agreement (HoA) with Sempra Infrastructure for the supply of 1.4 million tpa of LNG, marking its intended entrance into the global LNG market.
The LNG will come from either Sempra’s proposed 13.5 million tpa Port Arthur LNG Phase 1 project in Texas, US, or the 6.75 million tpa Cameron LNG Phase 2 project in Louisiana, US. The LNg will be supplied over a 20-year period on a free-on-board basis. The agreement is preliminary and non-binding, dependent on Sempra securing the necessary permits and financing for the proposed projects.
Ineos says that it is seeking competitive sources of energy for its own needs and those of its customers for the energy transition. The company plans to build partnerships with other industrial users of energy in Europe to allow them to also access competitive sources of energy. It will be the first corporate market entrant in some time to operate in this way. The company plans to achieve net zero across its operations by 2050.
‘This agreement represents a major step forward in the Ineos Energy journey, 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. Long-term supply from Ineos Energy will help alleviate the structural energy issues in Europe,’ says Brian Gilvary, chairman of Ineos Energy.
In April 2022, Abu Dhabi Investment Authority (ADIA) bought a 10% non-controlling stake in Sempra Infrastructure for US$1.73 billion, which chairman and CEO Jeffrey W Martin said ‘sends a clear signal about the value and expected growth prospects of our infrastructure platform.’
(Source: Tank Storage Magazine)