LNG

INEOS Group, the global petrochemicals manufacturer with over 190 facilities in nearly 30 countries and whose Chairman Jim Ratcliffe is seeking a stake in soccer team Manchester United, has entered the LNG shipping fleet market for the first time to transport US export volumes.

Ratcliffe, who is a trained chemical engineer who used to work for ExxonMobil Chemicals and now has joint ventures with Chinese groups like Sinopec, was the first to import US shale gas into Europe. His other interests include soccer team investments.

INEOS Energy Trading signed agreements with the Japanese shipping company Mitsui OSK Lines (MOL) for two newbuild LNG carriers to be used for the importation of LNG into Germany from the United States.

Port Arthur LNG

These agreements are a significant shipping move by INEOS following the long-term Sales and Purchase Agreement signed with US utility Sempra for 1.4 million tonnes per annum of cargoes from the planned Port Arthur LNG export project in Texas.

Ratcliffe’s company purchased the volumes to ship to its long-term regasification capacity holding at Brunsbüttel, the proposed onshore German LNG import terminal on the Elbe River north of Hamburg.

The small Brunsbüttel port is currently operating a floating storage and regasification facility (FSRU) for LNG shipments to replace the cut-off supplies of Russian pipeline natural gas to Germany and the European Union via the North Stream routes.

“INEOS will capitalise on its experience as the largest transporter of ethane gas from the US to Europe and Asia, to develop a ‘pipeline’ of LNG into Europe to service its own demand, as well as that of select third parties,” explained INEOS.

The comoany said that both LNG vessels will have a capacity of 174,000 cubic metres and are being built at Daewoo Shipbuilding & Marine Engineering at Okpo in South Korea and would be equipped with the latest MAN Energy Solutions engines.

“It was extremely important that we selected modern, efficient vessels with environmental considerations embedded in the design,” said David Bucknall, Chief Executive of INEOS Energy Trading.

“We agreed an engine type and vessel specification with MOL that we believe is optimal for reducing carbon emissions and methane slip,” Bucknall explained.

Opportunities

“We will continue to work with MOL to identify further opportunities to reduce emissions as both companies work towards a net zero future,” the CEO stated.

Whilst INEOS has an extensive fleet of ethane and naphtha carriers, these two vessels signify their first entry into the LNG carrier market.

“We are delighted to be working with MOL, who have a great deal of experience shipping LNG and an excellent reputation,” Bucknall said.

“We look forward to developing the relationship, both during the charter period and beyond,” he added.  

Sempra Infrastructure, a subsidiary of California-based Sempra, has signed another long-term sale and purchase agreement, its third in recent weeks, and this time with French utility Engie.

US major ConocoPhillips and QatarEnergy will combine to provide 2 million tonnes per annum of LNG to Germany’s new onshore import terminal under development at Brunsbüttel on the Elbe River.

German LNG Terminal GmbH, the development company of the onshore import facility at Brunsbüttel on the Elbe River south of the port of Hamburg and adjacent to the Kiel Canal, has signed up three leading energy companies as long-term foundation customers for regasification capacity.

Ineos Group, the UK multinational chemicals company with ethane trading links to the US Gulf Coast, has signed an accord with Sempra Infrastructure to secure future cargoes from the planned Port Arthur LNG export project in Texas or the expansion of the existing Cameron LNG plant at Hackberry in Louisiana.

UK major BP has agreed a $5 billion deal to sell its global petrochemicals business to Ineos, a European chemicals and refinery company and an importer of ethane made from US shale gas.

Ineos, the European petrochemicals company with shale-gas and refinery assets in the UK, said it signed a long-term supply agreement with SP Chemicals of China for the supply of ethane made from US shale gas.

Ineos, one of the largest global chemical companies and the importer of the first US shale-gas cargo into the UK, is now broadening its presence in British shale gas exploration to lessen its future reliance on imports.