INEOS Energy has agreed to sell liquefied natural gas (LNG) to Asian markets from 2029, marking the company's first LNG sales to the Pacific Basin.
The agreement will see INEOS Energy deliver LNG on an ex-ship (DES) basis which will give Asian markets access to LNG.
The acquisition adds to the company's LNG portfolio, which is limited to the Atlantic Basin and furthers the company's plans to grow its LNG business to become more globally diversified across both the Atlantic and Pacific Basin markets, the company said.
The deal with Marubeni is an important step for INEOS as it continues to grow its LNG business in Asia,” says INEOS. This agreement will be a means for growth in the Pacific Basin, an important growth market for LNG.
“INEOS Energy's LNG portfolio remains diversified and flexible and we are happy to have Marubeni as a strong and established partner,” said David Bucknall, INEOS Energy's CEO.
Masahiro Yamazaki, Chief Operating Officer, Energy & Chemicals Division, Marubeni Corporation stated, 'We are pleased to finish this contract with INEOS Energy and hope for future collaboration in the international LNG market'.
Despite a decline in its significance as a source of LNG supply, Asia is continuing to be a critical area of global demand, with the region's rising energy demand and fuel switching in power generation and industrial applications, said INEOS.
Key Highlights:
- First Pacific LNG deal: INEOS enters Asia with LNG supply from 2029
- Asia expansion: Targets rising demand in power and industry sectors
- Global diversification: Strengthens LNG portfolio across Atlantic and Pacific markets
The deal further bolsters its efforts to supply LNG in various regions and to further diversify its global LNG portfolio, the company said.
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The deal has become a symbol of the global energy landscape changes, where LNG has emerged as a versatile bridge fuel in Asia's shift towards a lower-carbon energy matrix. It also showcases the fact that big energy traders are starting to look ahead to the long-term growth in demand that developing and emerging Asian economies will bring.
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The transaction represents a strategic win for INEOS Energy to diversify its portfolio from the Atlantic to Pacific region, mitigating regional concentration risk as well as bolstering the company's position as a global LNG supplier. Such collaboration with reputable companies like Marubeni also provides long-term market access for highly competitive Asian energy markets.
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The contracts are likely to be crucial in securing energy security, flexibility in pricing, and supply stability in the region, especially as LNG demand remains a dynamic response to the growth of renewable energy resources.