Skip to main content

Sempra Infrastructure and INEOS Energy Trading sign Heads of Agreement

Published by
LNG Industry,

Sempra Infrastructure, a subsidiary of Sempra, and INEOS Energy Trading Ltd., a subsidiary of INEOS, a global chemical products manufacturer, has announced they have entered into a Heads of Agreement (HOA) for the long-term supply of LNG from Sempra Infrastructure’s Gulf Coast LNG portfolio of projects under development in North America.

Sempra, Sempra Infrastructure, INEOS, INEOS Energy Trading, Heads of Agreement, HOA, LNG, liquefied natural gas, Gulf Coast LNG projects, Port Arthur LNG project, Cameron LNG Phase 2 project, LNG terminal, LNG facility, LNG exports

The HOA provides the framework for the negotiation and finalisation of a definitive 20-year LNG Sales and Purchase Agreement (SPA) for approximately 1.4 million tpy of LNG delivered FOB from the proposed Port Arthur LNG project or Cameron LNG Phase 2 project.

“We look forward to building a long-term relationship with a company that shares our vision of increasing the world’s energy security while simultaneously advancing lower-carbon energy sources,” said Justin Bird, CEO of Sempra Infrastructure. “This HOA demonstrates our ongoing momentum in advancing our next generation of LNG export facilities with an eye toward supplying US natural gas to some of the world’s leading energy and manufacturing companies.”

“We are delighted to begin a strategic relationship with Sempra Infrastructure, bringing significant expertise in construction and operation of LNG facilities. 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 globally,” said David Bucknall, CEO of INEOS Energy.

Sempra Infrastructure is working to expand its Gulf Coast LNG asset base through the simultaneous development of the Port Arthur LNG project in Jefferson County, Texas, and the proposed expansion of the Cameron LNG facility in Hackberry, Louisiana. INEOS joins the company’s growing portfolio of global energy and manufacturing companies that have recently executed HOAs for potential long-term offtake from these projects.

In addition to the 1.4 million tpy HOA with INEOS Energy Trading, last month Sempra Infrastructure announced an HOA with the Polish Oil and Gas Company (PGNiG) for 2 million tpy from Cameron LNG Phase 2 and 1 million tpy from Port Arthur LNG, with an option for PGNiG to reallocate the Cameron LNG Phase 2 volumes to Port Arthur LNG. Sempra Infrastructure also recently announced an HOA with RWE Supply and Trading for 2.25 million tpy from the Port Arthur LNG project.

The Port Arthur LNG Phase 1 project has received all major permits, and is anticipated to include up to two natural gas liquefaction trains capable of producing, under optimal conditions, approximately 13.5 million tpy of LNG. In addition, the proposed Cameron LNG Phase 2 project, expected to include a single LNG train with a maximum production capacity of 6.75 million tpy of LNG, continues to reach a number of important commercial and permitting milestones, including the launch of a competitive FEED process.

The referenced HOAs are preliminary non-binding agreements, and the development of the Port Arthur LNG and Cameron LNG Phase 2 projects remain subject to a number of risks and uncertainties, including reaching definitive agreements, securing all necessary permits, signing engineering and construction contracts, obtaining financing and incentives, and reaching a Final Investment Decision (FID).

Read the article online at:

You might also like


Embed article link: (copy the HTML code below):


This article has been tagged under the following:

US LNG news LNG export news