INEOS and Covestro have announced a major long-term agreement for the supply of natural gas, marking a significant milestone in efforts to secure reliable energy for European industry.
The deal, set to begin in 2027 and run for up to eight years, leverages INEOS’ newly established global liquefied natural gas (LNG) supply chain and underscores both companies’ commitment to supporting Europe’s industrial competitiveness.
Under the agreement, Covestro will access natural gas from INEOS’ global LNG portfolio, ensuring a stable and predictable feedstock and energy source for its operations across Europe.
This partnership aims to address the urgent need for diversified and dependable energy supplies in the region, helping Covestro mitigate market volatility and maintain uninterrupted production.
David Bucknall, CEO of INEOS Energy, emphasised the strategic importance of the deal: “Our goal is to supply customers with vital energy throughout the energy transition, not just at the end.
“That means maintaining competitive hydrocarbon supplies as alternatives emerge and grow.
“This long-term LNG deal with Covestro does exactly that, providing reliable, cost-effective energy to help our industrial partners manage volatility and avoid shortages.”
Covestro’s Chief Technology Officer, Thorsten Dreier, highlighted the value of long-term energy security: “Securing a stable, competitive and predictable gas supply is essential for our operations right now.
“This agreement with INEOS provides us with the long-term security we need to maintain our production and contribute to the European economy.
“We value INEOS’ commitment to supporting European industry and their proactive approach to addressing the region’s energy challenges.
“This contract is an important building block for us as a company in the energy intensive industry to transition towards an affordable renewable energy supply.”
This agreement follows INEOS’ entry into the LNG market in 2022, when it signed a 20-year contract with Sempra Infrastructure for 1.4 million tonnes of LNG per year from the US Gulf Coast.
The new deal with Covestro further strengthens INEOS’ position as a key energy supplier during Europe’s transition to renewable energy sources.
Both companies see the partnership as a crucial step in maintaining a resilient and competitive industrial base in Europe while supporting the region’s broader energy transition goals.
