INEOS and Covestro Sign 8-Year LNG Supply Deal to Boost European Industry
- The agreement starts in 2027 and lasts for 8 years.
- INEOS will supply natural gas from its global LNG portfolio.
- Covestro uses natural gas as feedstock and energy source.
- INEOS entered the LNG sector in June 2022.
Agreement Overview
INEOS and Covestro have announced a long-term agreement for the supply of natural gas, set to begin in 2027 and lasting for eight years. This deal builds on INEOS' LNG supply chain and aims to support European industrial competitiveness.
Energy Security
The agreement provides Covestro with a stable and predictable supply of natural gas, which is used as both a feedstock and an energy source in their European operations. This collaboration addresses the need for secure and diversified energy sources in Europe.
Strategic Collaboration
David Bucknall, CEO of INEOS Energy, emphasized the importance of maintaining competitive hydrocarbon supplies during the energy transition. Thorsten Dreier, CTO of Covestro, highlighted the necessity of a stable gas supply for their operations and its role in supporting the European economy.
Background
INEOS first entered the LNG sector in June 2022, signing a 20-year agreement with Sempra Infrastructure to supply 1.4 million tonnes of LNG annually from the US Gulf Coast.
Source: INEOS