Sempra, INEOS agree to 1.4-million tpy Port Arthur LNG offtake

Sempra Infrastructure, a subsidiary of Sempra, has entered into a 20-year agreement with INEOS Group Ltd. for supply of 1.4 million tonnes/year (tpy) of LNG from the 13.5-million tpy Phase 1 of Sempra’s Port Arthur LNG project under development in Jefferson County, Tex. The LNG will be supplied free-on-board.

The companies also signed a non-binding heads of agreement for INEOS’ potential purchase of an additional 0.2 million tpy from Port Arthur LNG Phase 2.

Port Arthur LNG Phase 1 is permitted and expected to include two 6.75-million tpy liquefaction trains, LNG storage tanks, and associated infrastructure. Port Arthur LNG Phase 2 will be similarly sized, with Sempra actively marketing its output.

Sempra earlier this year finalized an engineering, procurement, and construction contract with Bechtel Energy for Phase 1 and last month entered into a 20-year agreement with ConocoPhillips for the sale of 5 million tpy (OGJ Online, Oct. 20, 2022; Nov. 23, 2022). The company has targeted a first-quarter 2023 final investment decision for Phase 1, with first cargo deliveries expected in 2027.

INEOS earlier this year signed a contract for long-term regasification capacity at NV Nederlandse Gasunie subsidiary CS Gas North SA’s planned land-based 8 billion cu m/year (bcmy) German LNG terminal in Brunsbuettel, Germany. The terminal can be expanded to at least 10 bcmy.

German LNG has executed its engineering, procurement, and construction contract and has entered into agreements with foundation customers INEOS, ConocoPhillips Co. and RWE Supply & Trading for long-term regasification capacity in the terminal. It is now focusing on securing final permits to fully develop the project.