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)
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