- The agreement will supply up to 0.5 MTPA of natural gas to Europe starting in 2027.
- The deal uses a TTF Netback pricing mechanism linked to Europe's gas market.
- The supply is enough to heat over 500,000 homes annually.
Agreement Details
INEOS Energy has signed a long-term deal with Kinetik Holdings Inc. to supply natural gas to Europe starting in 2027. The agreement will deliver up to 0.5 million tonnes per annum (MTPA) of natural gas, sufficient to heat over 500,000 homes annually.
Pricing Mechanism
The deal employs a Title Transfer Facility (TTF) Netback pricing mechanism, linking the price of U.S. natural gas to Europe's benchmark gas market. This approach aims to track European market conditions while minimizing exposure to supply shocks and price volatility.
Energy Security
Europe faces tight supplies and volatile prices due to years of under-investment and policy uncertainty. This agreement aims to enhance Europe's energy resilience by securing reliable energy flows from the U.S., thereby stabilizing markets and supporting industrial planning.
