INEOS is stepping up to help Europe cut its greenhouse gas emissions – to fill the gap left by Russian gas, and to help alleviate the structural energy issues in Europe. It has signed a contract with Sempra, an American energy infrastructure company, to start exporting 1.4 million tonnes of affordable, clean and reliable energy every year for 20 years, from 2026.
The decision to start exporting liquefied natural gas from the US Gulf Coast – and enter the global LNG market – is a first for INEOS, and comes at a time of significant transformation in the energy industry.
“We are looking forward to building a longterm 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, which will be developing the export terminals.
Brian Gilvary, Chairman of INEOS Energy, said INEOS also intends to build partnerships with other industrial users of energy in Europe to help them access the same competitive sources of energy.
“We will be the first market entrant to operate in this way in many years,” he said.
Although INEOS has never shipped LNG before, it has been safely transporting America’s competitively-priced liquefied ethane gas to Europe since 2015.
David Bucknall, CEO of INEOS Energy, described Sempra as experts in building and operating LNG facilities and said the American company shared its vision.
“This agreement is an important part of our strategy,” he said.
The LNG will be delivered free-on-board from either the proposed LNG processing and export facility in Jefferson County, Texas, or the Cameron LNG Phase 2 project in Hackberry, Louisiana.
INEOS, though, remains committed to achieving net zero by 2050 across its operations.
“The company is working to decarbonise the supply chain through carbon capture and storage and provide optionality for alternative sources of energy, such as its leadership in the production of hydrogen, as we develop them over time,” said David.
Sempra’s agreement with INEOS is a preliminary non-binding arrangement, and the development of the Port Arthur and Cameron sites are subject to securing all necessary permits, signing engineering and construction contracts, obtaining financing and a final investment decision.