INEOS and Covestro Ink 8-Year LNG Gas Supply Agreement Starting 2027
OIL & GAS

INEOS and Covestro Ink 8-Year LNG Gas Supply Agreement Starting 2027

INEOS and Covestro have announced a long-term agreement for the supply of natural gas for up to eight years, starting 2027. The agreement builds on INEOS' newly established LNG supply chain, and both companies' commitment to support European industrial competitiveness.
 
Covestro uses natural gas as a feedstock as well as an energy source. The partnership will enable the supply of natural gas sourced from INEOS’ global LNG portfolio, providing a stable and predictable feedstock and energy stream for Covestro’s European operations. This strategic collaboration addresses the critical need for secure and diversified energy sources in Europe.
 
David Bucknall CEO, INEOS Energy said: “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."
 
Thorsten Dreier, Chief Technology Officer of Covestro, added, "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 reinforces the shared goal of both companies to maintain a strong and competitive industrial base in Europe. By ensuring a reliable gas supply, INEOS and Covestro are taking real, tangible steps to secure the future of their European manufacturing assets.
 
INEOS first entered the LNG sector in June 2022, signing a 20-year agreement with US-based Sempra Infrastructure to supply 1.4 million tonnes of LNG annually from the US Gulf Coast.

INEOS and Covestro have announced a long-term agreement for the supply of natural gas for up to eight years, starting 2027. The agreement builds on INEOS' newly established LNG supply chain, and both companies' commitment to support European industrial competitiveness. Covestro uses natural gas as a feedstock as well as an energy source. The partnership will enable the supply of natural gas sourced from INEOS’ global LNG portfolio, providing a stable and predictable feedstock and energy stream for Covestro’s European operations. This strategic collaboration addresses the critical need for secure and diversified energy sources in Europe. David Bucknall CEO, INEOS Energy said: “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. Thorsten Dreier, Chief Technology Officer of Covestro, added, 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 reinforces the shared goal of both companies to maintain a strong and competitive industrial base in Europe. By ensuring a reliable gas supply, INEOS and Covestro are taking real, tangible steps to secure the future of their European manufacturing assets. INEOS first entered the LNG sector in June 2022, signing a 20-year agreement with US-based Sempra Infrastructure to supply 1.4 million tonnes of LNG annually from the US Gulf Coast.

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