Sempra signs LNG supply deal with Ineos for Port Arthur project

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Sempra (NYSE:SRE) said Thursday it entered into a long-term sale and purchase agreement with Ineos for the supply of liquefied natural gas from Phase 1 of its Port Arthur LNG project under development in Texas.

Ineos will purchase ~1.4M metric tons/year of LNG delivered free-on-board from the proposed liquefaction project for a 20-year term.

The companies also signed a non-binding heads of agreement for Ineos' potential purchase of an additional 200K tons/year from the Port Arthur LNG Phase 2 project under development.

Port Arthur LNG Phase 1 is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks and associated facilities capable of producing as much as 13.5M tons/year of LNG, with first cargo deliveries anticipated in 2027.

Sempra (SRE) recently announced a 20-year supply deal with ConocoPhillips, which also agreed to acquire 30% of the equity in Phase 1.