The HOA provides the framework for the negotiation and completion of a definitive LNG purchase and sale agreement for approximately 20 years.
Sempra Infrastructure and INEOS Energy Trading, a subsidiary of INEOS, today announced the signing of a preliminary agreement (HOA) for the long-term supply of liquefied natural gas (LNG) from Sempra Infrastructure's portfolio of LNG projects being developed in North America on the Gulf Coast.
The HOA provides the framework for the negotiation and completion of a 20-year definitive LNG purchase and sale agreement for approximately 1.4 million tons per annum (Mtpa) of LNG supplied free on board from the proposed Port Arthur LNG project or the Cameron LNG Phase 2 project.
"INEOS is one of Europe's largest end users of natural gas and we look forward to establishing a long-term relationship with a company that shares our vision of increasing the world's energy security while promoting lower carbon energy sources," commented Justin Bird, Chief Executive Officer (CEO) of Sempra Infrastructure.
"This HOA demonstrates our continued momentum in advancing our next generation LNG export facility with the goal of supplying U.S. natural gas to some of the world's leading energy companies and manufacturers."
"We are very pleased to enter into a strategic relationship with Sempra Infrastructure, which has extensive experience in the construction and operation of LNG facilities. This agreement is an important part of our strategy as we build a network of liquefaction, transportation and regasification capacity to deliver affordable, cleaner and reliable energy to our businesses and customers around the world," stated 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 growing portfolio of global energy and manufacturing companies with which the company has recently executed HOAs for the potential long-term acquisition of these projects.
In addition to the preliminary HOA to purchase 1.4 million tons per year with INEOS Energy Trading, last month Sempra Infrastructure announced a preliminary HOA with the Polish Oil and Gas Company (PGNiG) for 2 Mtpa of Cameron LNG Phase 2 and 1 Mtpa of Port Arthur LNG, with the option for PGNiG to reallocate Cameron LNG Phase 2 volumes to Port Arthur LNG. In addition, Sempra Infrastructure also recently announced a preliminary agreement (HOA) with RWE Supply and Trading for 2.5 Mtpa from the Port Arthur LNG project.
The Port Arthur LNG Phase 1 project has received all major permits and is expected to include up to two natural gas liquefaction trains capable of producing, at optimal conditions, approximately 13.5 Mtpa of LNG. In addition, the proposed Cameron LNG Phase 2 project, which is expected to include a single LNG train with a maximum production capacity of 6.75 Mtpa of LNG, continues to achieve a number of significant commercial and permitting milestones, including the launch of a competitive Front End Engineering Design (FEED) process.