8 Year LNG Deal Secured to Shield Europe’s Industry from Energy Shocks

INEOS and Covestro have signed an 8-year LNG supply agreement starting in 2027, marking a strategic step toward securing Europe’s industrial energy resilience. Drawing on INEOS’s newly established liquefied natural gas (LNG) infrastructure, the deal ensures Covestro access to stable, long-term gas supplies for its European operations.

For Covestro, a company that relies heavily on natural gas as both feedstock and energy, this agreement guarantees predictability in a volatile energy landscape. By tapping into INEOS’s global LNG portfolio, Covestro reinforces its ability to maintain steady production while continuing to support the European economy. The move is seen as a vital safeguard against future disruptions.

David Bucknall, CEO of INEOS, emphasized the importance of bridging the current energy reality with long-term decarbonization goals. “We’re not just waiting for the energy transition to finish. We’re delivering affordable and secure hydrocarbons now to support our customers through this transition,” he stated.

Covestro CTO Thorsten Dreier echoed the sentiment, calling the deal a cornerstone for operational continuity and a stepping stone toward a renewable future. “This contract is crucial to maintain competitiveness and secure the future of energy-intensive manufacturing in Europe,” he said.

This agreement builds upon INEOS’s 2022 entry into the LNG sector, when it signed a 20-year deal to import 1.4 million tons of LNG annually from the US Gulf Coast. The new deal with Covestro signals a deepening commitment to ensuring energy supply security amid increasing geopolitical and market uncertainties.