INEOS and Covestro announce a long-term LNG supply agreement for eight years starting from 2027
INEOS and Covestro have entered into a major long-term natural gas supply agreement spanning up to eight years, commencing in 2027. The deal leverages INEOS' recently established LNG supply chain and aligns with both companies' commitment to bolstering European industrial competitiveness.
Covestro, which utilizes natural gas both as a feedstock and an energy source, will benefit from a stable and predictable supply sourced from INEOS' global LNG portfolio. This strategic partnership aims to address Europe's pressing need for secure and diversified energy sources while supporting Covestro's European operations.
The agreement underscores the shared objective of both companies to strengthen Europe's industrial base. By ensuring a reliable gas supply, INEOS and Covestro are taking concrete measures to safeguard their European manufacturing assets. INEOS expanded into the LNG sector in June 2022 through a 20-year agreement with US-based Sempira Infrastructure, securing an annual supply of 1.4 million tonnes of LNG from the US Gulf Coast.
David Bucknall, CEO of INEOS Energy, stated that the company's objective was to provide customers with essential energy throughout the transition period, not just in the long term. He emphasized that the agreement with Covestro would deliver reliable and cost-effective energy, helping industrial partners mitigate market volatility and prevent supply shortages.
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Thorsten Dreier, Chief Technology Officer of Covestro, highlighted the importance of securing a stable and competitive gas supply for the company's operations. He noted that the partnership with INEOS offered the long-term security needed to sustain production and support the European economy. Dreier also acknowledged INEOS' proactive approach in addressing the region's energy challenges, describing the contract as a crucial step in Covestro's transition toward affordable renewable energy in the energy-intensive sector.
