Britain’s Ineos signs 20-yr LNG deal with Sempra Infrastructure

Britain’s Ineos signs 20-yr LNG deal with Sempra Infrastructure

Author of the article:


Britain’s INEOS Energy, part of INEOS Group, has signed an agreement with U.S. firm Sempra Infrastructure for the supply of 1.4 million tonnes per annum of liquefied natural gas (LNG) from North America for 20 years, it said on Wednesday.

It marks INEOS’s entry into the global LNG market, with the volumes intended both for trading and supplying of INEOS’ own industrial needs in Europe.

The LNG will be delivered free-on-board, from either the proposed Port Arthur LNG Phase 1 project or the Cameron LNG Phase 2 projects in the U.S. Gulf, INEOS Energy said.

The deal is still a preliminary non-binding arrangement subject to the two LNG projects securing all necessary permits, engineering and construction contracts, obtaining financing and a final investment decision, it added.

INEOS Energy’s long-term supply agreement comes as Europe is seeking alternative gas sources and secure supply amid dwindling deliveries of Russian gas.

In May, Poland’s PGNiG also signed a 20-year LNG supply deal with Sempra. (Reporting by Nora Buli in Oslo; Editing by Nina Chestney)

Advertisement 2

Top Stories Newsletter logo

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300