Phase 1 of the Port Arthur LNG project will include two natural gas liquefaction trains. Credit: Sempra Infrastructure.

Ineos has signed an agreement with Sempra Infrastructure, a subsidiary of Sempra, to supply liquefied natural gas (LNG) from Phase I of the Port Arthur LNG export facility in Texas, US.

Being developed in Jefferson County, the Phase 1 Port Arthur LNG project will have the capacity to produce up to 13.5 million tonnes per annum (Mtpa) of LNG.

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The Phase I project will comprise two natural gas liquefaction trains, up to three LNG storage tanks, and associated facilities.

Under the 20-year agreement, Ineos will receive approximately 1.4Mtpa of LNG from the Phase 1 Port Arthur LNG project.

Ineos also signed non-binding heads of agreement (HOA) with Sempra for the potential purchase of an additional 0.2Mtpa from the Port Arthur LNG Phase 2 project, which is also in the development phase.

Ineos Energy CEO David Bucknall said: “This agreement is a critical part of our new global LNG supply chain that will enable us to deliver cleaner and reliable energy to our businesses and customers.”

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Earlier this year, Ineos signed a contract for long-term regasification capacity in the proposed German LNG Terminal in Germany’s Brunsbuettel.

Ineos Energy chairman Brian Gilvary said: “This long-term contract with Sempra Infrastructure and the agreement of regasification capacity in Brunsbuettel secures the key areas of the value chain for INEOS across the Atlantic corridor and represents a major step forward in the INEOS Energy journey, at a time of significant transformation in the energy industry.”

The final investment decision for Phase 1 of the Port Arthur LNG project is planned for the first quarter of 2023, with the first cargo scheduled for deliveries in 2027.