- Equinor will supply up to 23 terawatt hours of natural gas annually to BASF.
- The agreement spans ten years, starting October 1, 2025.
- BASF uses natural gas as energy and raw material for basic chemicals.
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Agreement Details
BASF and Equinor have entered a strategic partnership for the supply of natural gas. Equinor will deliver up to 23 terawatt hours, approximately 2 billion cubic meters, of natural gas annually to BASF over a ten-year period. This agreement secures a significant portion of BASF's natural gas requirements in Europe, with deliveries commencing on October 1, 2025.
Strategic Importance
The agreement is crucial for BASF as it uses natural gas both as an energy source and as a raw material in producing essential basic chemicals. This deal supports BASF's strategy to diversify its energy and raw materials portfolio. The gas will be sold on market terms, ensuring competitive pricing.
Environmental Considerations
Equinor's natural gas is noted for having the lowest emissions from production and transportation, aligning with BASF's efforts to reduce its carbon footprint. This aspect of the agreement highlights the environmental benefits of sourcing gas from Norway, contributing to BASF's sustainability targets.
Partnership Background
Equinor has been a long-term supplier of gas and liquids to BASF, reinforcing the trust and value in their partnership. This new agreement further solidifies their collaboration, ensuring a reliable supply of natural gas for BASF's European operations.
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