INEOS and Covestro have entered into a significant long-term agreement for the supply of natural gas, set to begin in 2027 and continue for up to eight years. This partnership builds on INEOS’ recently established global LNG supply chain and underscores both companies’ commitment to bolstering European industrial competitiveness.
Reliable Energy for Covestro’s European Operations
Covestro relies on natural gas as both a feedstock and an energy source. Through this agreement, INEOS will supply natural gas from its global LNG portfolio, ensuring Covestro has a stable and predictable energy stream to support its European manufacturing operations. As Europe faces increasing energy uncertainty, this collaboration offers a critical step toward secure and diversified energy supplies.
Leadership Perspectives on the Partnership
As per the press release, David Bucknall, CEO of INEOS Energy, emphasized the importance of energy continuity during the transition to renewables. He stated, “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.”
Echoing this sentiment, 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.”
Supporting Europe’s Industrial Future
With this agreement, INEOS and Covestro demonstrate their shared goal of maintaining a robust and competitive industrial base in Europe. By ensuring a reliable gas supply, they are taking concrete action to safeguard the future of European manufacturing.
INEOS’ Expanding Presence in LNG
INEOS entered the LNG market in June 2022 by signing a 20-year agreement with US-based Sempra Infrastructure to import 1.4 million tonnes of LNG annually from the US Gulf Coast. This latest deal with Covestro marks another milestone in INEOS’ growing role in the global LNG sector.
