Ineos Inked Long-Term Sales and Purchase Agreement with Sempra

SEATTLE (Oil Monster): Ineos Group has entered into a long-term sales and purchase agreement (SPA) with Sempra Infrastructure for 1.4 mmty of liquefied natural gas (LNG) from Port Arthur LNG export project.

The two parties had entered into a tentative agreement earlier this year, which has now been formalized with the new SPA. Additional agreements have also been signed, which allows potential purchase of around 0.2 mmty of LNG from a second phase of the Jefferson County project.

Commenting on the deal, Brian Gilvary, Chairman, Ineos Energy noted that long-term contract with Sempra Infrastructure and the contract for regasification capacity in Brunsbuettel will help it to secure the key areas of the value chain across the Atlantic corridor. It represents a major step forward in its journey, he said.

As per estimates, the initial phase of the Port Arthur terminal is expected to produce up to 13.5 mmty. The second phase could boost the capacity to around 27 mmty. It must be noted that the second phase is already in the permitting process.