LNG News Editor:
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.
Ineos said that building on its position exporting ethane from the US, it was now entering the LNG market.
Sempra accord
The London-headquartered company has signed a Heads of Agreement with Sempra, the California-based utility and LNG plants and projects owner in the US and Mexico.
The Sempra Infrastructure units will provide 1.4 million tonnes of per annum of LNG from the US Gulf Coast for 20 years.
“Ineos Energy Trading will market the LNG into global markets as well as supply its own industrial needs in Europe,” explained the company controlled by the UK energy and chemicals entrepreneur, Sir Jim Ratcliffe.
“The agreement comes at a critical time for energy markets and will provide much needed security of supply,” added Ineos.
Under the agreement if it is finalized, the LNG will be delivered on a free-on-board basis from either the proposed Port Arthur plant or Cameron LNG.
The company said it regarded itself as a first mover among European corporates as it secures competitive sources of energy to meet its own needs and those of its customers throughout the energy transition. “Ineos intends to build partnerships with other industrial users of energy in Europe to help them access the same competitive sources of energy. It is the first market entrant to operate in this way in many years,” it declared.
Brian Gilvary, Chairman of the INEOS Energy unit, said the agreement represented a major step forward in the Ineos Energy strategy 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,” he declared.
Sempra’s Port Arthur LNG development envisages producing 13.5 MTPA of LNG and is a fully permitted venture to be located at a 3,000-acre site in Jefferson County in 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 expansion.
Strategic
David Bucknall, Chief Executive of Ineos Energy, said the company was delighted to begin a strategic relationship with Sempra Infrastructure.
“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,” added Bucknall.
