Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), today announced it has entered into a long-term sale and purchase agreement (SPA) with INEOS, for the supply of liquefied natural gas (LNG) from Phase 1 of its Port Arthur LNG project under development in Jefferson County, Texas.

Under the SPA, INEOS has agreed to purchase approximately 1.4 million tonnes per annum (Mtpa) of LNG delivered free-on-board from the proposed Phase 1 liquefaction project for a term of 20 years. Additionally, the companies have signed a non-binding heads of agreement (HOA) for INEOS’ potential purchase of an additional 0.2 Mtpa from the Port Arthur LNG Phase 2 project under development.

“We are excited to finalize our commercial relationship with INEOS as a valued long-term LNG off-taker from the Port Arthur LNG Phase 1 development project,” said Justin Bird, CEO of Sempra Infrastructure. “We look forward to advancing this project so we can begin delivering new supplies of U.S. LNG to our European partners, as they pursue more secure energy for their customers.”

“We are pleased to have reached this milestone together with Sempra Infrastructure that will facilitate further access to U.S. LNG supplies,” said David Bucknall, CEO of INEOS Energy. “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.”

The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG. A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.

Sempra Infrastructure recently announced it had finalized an engineering, procurement and construction contract with Bechtel Energy for the proposed Port Arthur LNG Phase 1 project and that it has entered into a long-term agreement with ConocoPhillips for the sale and purchase of approximately 5.0 Mtpa of LNG from the project. The company is focused on completing the remaining steps necessary to achieve its goal of making a final investment decision for Phase 1 of the liquefaction project in the first quarter of 2023, with first cargo deliveries expected in 2027.

Development of Phase 1 and Phase 2 of the Port Arthur LNG project is contingent upon completing the required commercial agreements, securing all necessary permits, obtaining financing, and reaching a final investment decision, among other factors.

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 delivery of cleaner energy for its customers. 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 decarbonisation 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.