Sempra inks Port Arthur LNG deal with INEOS
Sempra Infrastructure said December 1 it had signed a long-term sale and purchase agreement (SPA) with Belgian petrochemical giant INEOS covering 1.4mn metric tons/year of LNG from Sempra’s proposed Port Arthur LNG terminal in Texas.
Under terms of the SPA, the LNG will be delivered free-on-board from the $10.5bn first phase of the project for a term of 20 years. Sempra and INEOS have also signed a non-binding heads of agreement contemplating the additional purchase by INEOS of 200,000 mt/yr of LNG from Phase 2, which is being actively marketed.
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“We are pleased to have reached this milestone together with Sempra Infrastructure that will facilitate further access to US LNG supplies,” INEOS Energy CEO David Bucknall said. “This agreement is a critical part of our new global LNG supply chain that will enable us to deliver cleaner and reliable energy to our businesses and customers.”
Sempra recently finalised an engineering, procurement and construction contract with Bechtel for the 13.5mn mt/yr Port Arthur LNG Phase 1 and has entered into a long-term SPA with ConocoPhillips for 5mn mt/yr of offtake. It expects to make a final investment decision on Phase 1 in Q1 2023, targeting first cargo delivery in 2027.