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HOUSTON, December 1, 2022 /PRNewswire/ — Sempra Infrastructure, a subsidiary of Sempra (NISE: SRE ) (BMV: SRE ), today announced that it has entered into a long-term purchase agreement (SPA) with INEOS for the supply of liquefied natural gas (LNG) from Phase 1 of its LNG of the Port Arthur 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 over a period of 20 years. In addition, the companies have signed a non-binding head agreement (HOA) to potentially purchase from INEOS 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 supplier of LNG from the Port Arthur LNG Phase 1 development project,” he said Justin Bird, CEO of Sempra Infrastructure. “We look forward to advancing this project so we can begin delivering new supplies of US LNG to our European partners as they strive for more secure energy for their customers.”
“We are pleased to have reached this milestone along with the Sempra infrastructure that will facilitate further access to US LNG supplies,” he said David Bucknall, CEO of INEOS Energi. “This agreement is a critical part of our new global LNG supply chain that will enable us to deliver cleaner and more reliable energy to our businesses and customers.”
The Port Arthur LNG Phase 1 project is permitted and is expected to include two natural gas flow trains and LNG storage tanks and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG. The similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.
Sempra Infrastructure recently announced that it has finalized an engineering, procurement and construction contract with Bechtel Energi for the proposed Phase 1 Port Arthur LNG project and has entered into a long-term contract 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.
The development of Phase 1 and Phase 2 of the Port Arthur LNG Project is dependent on the completion of the necessary commercial agreements, securing all necessary permits, obtaining financing and making 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 committed to enabling the delivery of cleaner energy for its customers. With a constant focus on sustainability, innovation, world-class safety, advocacy for people, resilient operations and social responsibility, its more than 2,000 employees develop, build and operate clean energy, energy grids and LNG and net-zero solutions, which are expected to play key role in the energy systems of the future. For more information about Sempra Infrastructure, visit www.SempraInfrastructure.com and Twitter.
About INEOS
INEOS is committed to achieving net zero by 2050 in all its operations. The company is working to decarbonize the supply chain over time through carbon capture and storage and provide optionality for alternative energy sources, such as its leadership in hydrogen production.
INEOS Energi meets the energy needs of society today and for the future. As an integral part of INEOS, a global manufacturing company, it continues to make an irreplaceable contribution to society by providing the most sustainable options for a wide range of everyday needs, making products and energy essential to everyday life. INEOS Energi is committed to net zero by 2050, producing and trading energy, power and carbon credits. It grows through the acquisition of existing oil and gas assets, in order to operate them safely, reliably and efficiently. The business will be at the forefront of new decarbonisation technologies such as carbon and hydrogen capture and storage. A sustainable energy business that continues to help consumers and industry meet their long-term energy needs and carbon reduction goals.
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on forward-looking assumptions, involve risks and uncertainties and they are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.
In this press release, forward-looking statements can be identified by words such as “believes”, “expects”, “intends”, “anticipates”, “considers”, “plans”, “estimates”, “projects” , “anticipates,” “should,” “could,” “would,” “will,” “confident,” “can,” “can,” “potential,” “possible,” “proposed,” “ongoing,” “construct,” “develop,” “opportunity,” “initiative,” “goal,” “outlook,” “optimistic,” “maintain,” “continue,” “advance,” “advance,” “aim,” “goal “, ” committed to,” or similar expressions, or when discussing our direction, priorities, strategy, goals, vision, mission, capabilities, projections, intentions or expectations.
Factors that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include, among others, risks and uncertainties related to: decisions, investigations, regulations, issuance or revocation of permits or other authorities and other actions of (i) the US Department of Energy, the Comision Reguladora de Energia, the US Federal Energy Regulatory Commission and other governmental and regulatory bodies and (ii) the US, Mexico and states, counties, cities and other jurisdictions therein and in other countries in which we do business; the success of business development efforts, construction projects and acquisitions and sales, including risks in (i) being able to make a final investment decision, (ii) completing construction projects or other transactions on schedule and on budget, (iii) realizing the expected benefits from any of these efforts if completed, and (iv) obtaining the consent or approval of partners or other third parties, including governmental and regulatory bodies; civil and criminal litigation, regulatory investigations, investigations, arbitrations, property disputes and other proceedings; changes in laws and regulations, including certain from Mexico laws and rules affecting licensing of energy suppliers, pricing of energy contracts, the electricity industry in general and the import, export, transportation and storage of hydrocarbons; cybersecurity threats, including by state and state-sponsored actors, ransomware attacks on our systems or the systems of third parties with whom we do business, including the power grid or other energy infrastructure, all of which have become more pronounced due to recent geopolitical events, such as the war in Ukraine; failure of foreign governments, government entities and our partners to honor their contracts and obligations; our ability to borrow money on favorable terms or otherwise and meet our debt service obligations, including (i) actions by credit rating agencies to downgrade our credit ratings or put those ratings on negative outlook and (ii) rising interest rates and inflation ; the impact on our ability to pass on increasing costs to current and future customers due to volatility in inflation, interest and foreign exchange rates and commodity prices and our ability to effectively hedge these risks; the impact of energy and climate policies, laws, regulations and disclosures, and related goals and actions of companies in our industry, including actions to reduce or eliminate reliance on natural gas and the risk of non-recovery for stranded assets; the pace of development and adoption of new technologies in the energy sector, including those designed to support the energy and climate goals of governments and private parties, and our ability to effectively incorporate them into our business; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our business, damage our facilities or systems, cause the release of harmful materials, cause fires or subject us to liability for damages, fines and penalties, some of which may be contested or not covered by insurers or may affect our ability to obtain satisfactory levels of affordable insurance; availability of natural gas; the impact of the COVID-19 pandemic on capital projects, regulatory approvals and the execution of our operations; changes in tax and trade policies, laws and regulations, including tariffs, revisions to international trade agreements and sanctions, such as those imposed and which may be imposed in the future in connection with the war in Ukraine, which may increase our costs, reduce our competitiveness, affect our ability to do business with certain counterparties or impair our ability to resolve trade disputes; and other uncertainties, some of which are difficult to predict and beyond our control.
These risks and uncertainties are discussed further in Sempra’s filings with the US Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free of charge on the SEC’s website, www.sec.gov, and on Sempra’s website, www.sempra.com. Investors should not place undue reliance on any forward-looking statements.
Sempra Infrastructure is not the same company as San Diego Gas & Electric Company or Southern California Gas Company, and neither Sempra Infrastructure nor any of its subsidiaries is regulated by the California Public Utilities Commission.
SOURCE Sempra North American Infrastructure
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