May 02, 2025 [Yahoo Finance]- INEOS has signed an agreement with Covestro for the supply of natural gas for a period of up to eight years, commencing in 2027.
The deal is stated to build on INEOS’ newly established LNG supply chain.
The agreement enables Covestro to access natural gas from INEOS’ global liquefied natural gas (LNG) portfolio. It will also provide Covestro with a stable feedstock and energy source for its operations in Europe.
According to the companies, this deal addresses Europe’s urgent need for reliable and diversified energy supplies, and also the common goal of maintaining a competitive industrial base in the region.
INEOS Energy CEO David Bucknall 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.”
INEOS first ventured into the LNG market in June 2022 through a 20-year contract with US-based Sempra Infrastructure for the supply of 1.4 million tonnes per annum of LNG from the US Gulf Coast.
Covestro chief technology officer Thorsten Dreier said: “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.”
Last month, Tachyus signed a contract with INEOS USA Oil & Gas to deploy its Aurion platform.
This cloud-scalable solution will assist INEOS in managing greenhouse gas (GHG) emissions across its operations, from individual sites to the corporate level, meeting increasing demand for precise emissions measurement and transparency.
Aurion is designed to integrate data from multiple sources and execute transparent calculations, ensuring accurate monitoring, prediction and reporting of GHG emissions, which is crucial for environmental accountability.
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