INEOS and Covestro Sign Major Long-Term Gas Supply Agreement

INEOS and Covestro have signed a major long-term gas supply agreement, which will take effect in 2027 and last for up to eight years. The cooperation builds on INEOS's recently established global LNG supply chain and demonstrates the commitment of both companies to enhance the competitiveness of European industry.

Covestro relies on natural gas as its feedstock and energy source. Through this agreement, INEOS will supply natural gas from its global LNG portfolio, ensuring Covestro has a stable and predictable energy flow to support its manufacturing operations in Europe. Against the backdrop of increasing energy uncertainty in Europe, this cooperation is a key step towards a secure and diversified energy supply.

David Bucknall, CEO of INEOS Energy, stressed the importance of maintaining energy continuity during the transition to renewable energy. He said: “Our goal is to provide our customers with vital energy throughout the energy transition. This means maintaining the competitiveness of our hydrocarbon supplies as alternative energy sources emerge and develop. This long-term LNG deal with Covestro is designed for this purpose, providing reliable, cost-effective energy to help our industrial partners cope with energy fluctuations and avoid energy shortages.”

Thorsten Dreier, Chief Technology Officer of Covestro, agreed, adding: “Securing a stable, competitive and predictable gas supply is essential for our current operations. This agreement with INEOS provides us with the long-term security we need to maintain production and contribute to the European economy. We value INEOS’ commitment to supporting European industry and their proactive approach to the region’s energy challenges.”

With this agreement, INEOS and Covestro are demonstrating their common goal: maintaining a strong and competitive industrial base in Europe. By ensuring a reliable gas supply, both parties are taking concrete actions to safeguard the future of European manufacturing.

INEOS entered the LNG market in June 2022, signing a 20-year agreement with US-based Sempra Infrastructure to import 1.4 million tonnes of LNG per year from the US Gulf Coast. This latest agreement with Covestro marks another milestone in INEOS’ growing position in the global LNG sector.