Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), and INEOS Energy Trading Ltd., a subsidiary of INEOS, a global chemical products manufacturer, today announced they have entered into a heads of agreement (HOA) for the long-term supply of liquefied natural gas (LNG) from Sempra Infrastructure’s Gulf Coast LNG portfolio of projects under development in North America.

The HOA provides the framework for the negotiation and finalization of a definitive 20-year LNG sale and purchase agreement for approximately 1.4 million tonnes per annum (Mtpa) of LNG delivered free-on-board from the proposed Port Arthur LNG project or Cameron LNG Phase 2 project.

“INEOS is one of Europe’s largest end-users of natural gas and we look forward to building a long-term 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. “This HOA demonstrates our ongoing momentum in advancing our next generation of LNG export facilities with an eye toward supplying U.S. natural gas to some of the world’s leading energy and manufacturing companies.”

“We are delighted to begin a strategic relationship with Sempra Infrastructure bringing significant expertise in construction and operation of LNG facilities. This agreement is an important part of our strategy as we build a network of liquefaction, shipping and regasification capacity to deliver affordable, cleaner and reliable energy to our businesses and customers globally,” said 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 company’s growing portfolio of global energy and manufacturing companies that have recently executed HOAs for potential long-term offtake from these projects.

In addition to the 1.4 Mtpa HOA with INEOS Energy Trading, last month Sempra Infrastructure announced an HOA with the Polish Oil & Gas Company (PGNiG) for 2 Mtpa from Cameron LNG Phase 2 and 1 Mtpa from Port Arthur LNG, with an option for PGNiG to reallocate the Cameron LNG Phase 2 volumes to Port Arthur LNG. Sempra Infrastructure also recently announced an HOA with RWE Supply and Trading for 2.25 Mtpa from the Port Arthur LNG project.

The Port Arthur LNG Phase 1 project has received all major permits and is anticipated to include up to two natural gas liquefaction trains capable of producing, under optimal conditions, approximately 13.5 Mtpa of LNG. In addition, the proposed Cameron LNG Phase 2 project, expected to include a single LNG train with a maximum production capacity of 6.75 Mtpa of LNG, continues to reach a number of important commercial and permitting milestones, including the launch of a competitive Front-End Engineering Design (FEED) process.

The referenced HOAs are preliminary non-binding arrangements, and the development of the Port Arthur LNG and Cameron LNG Phase 2 projects remain subject to a number of risks and uncertainties, including reaching definitive agreements, securing all necessary permits, signing engineering and construction contracts, obtaining financing and incentives, and reaching a final investment decision.

About Sempra Infrastructure

Sempra Infrastructure delivers energy for a better world. Through the combined strength of its assets in North America, the company is dedicated to enabling the energy transition and beyond. With a continued focus on sustainability, innovation, world-class safety, championing people, resilient operations and social responsibility, its more than 2,000 employees develop, build and operate clean power, energy networks and LNG and net-zero solutions, that are expected to play a crucial role in the energy systems of the future. For more information about Sempra Infrastructure, please visit www.SempraInfrastructure.com and Twitter.

About INEOS

INEOS is committed to achieving net-zero by 2050 across its operations. The company is working to, over time, decarbonize 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.

INEOS Energy meets society’s energy needs today and for the future. As an integral part of INEOS, a global manufacturing company, it continues to make an indispensable contribution to society by providing the most sustainable options for a wide range of everyday needs, making the products and energy essential for everyday life. INEOS Energy is committed to net-zero by 2050, producing and trading energy, power and carbon credits. It will grow through the acquisition of existing oil and gas assets, to run them safely, reliably, and efficiently. The business will be at the forefront of new decarbonization technologies such as carbon capture and storage and hydrogen. A sustainable energy business that continues to help consumers and industry to meet their long-term energy needs and carbon reduction targets.