This deal not only ensures energy security and feedstock for BASF's operations but also aligns with its sustainability goals due to Norway's low-emission gas production.
European industrial giant BASF and Norwegian energy major Equinor have officially cemented a strategic long-term partnership with the signing of a pivotal ten-year natural gas supply agreement. This landmark deal, confirmed on July 18, will see Equinor provide up to 23 terawatt hours (TWh), or approximately 2 billion cubic meters (bcm), of natural gas to BASF annually, commencing on October 1, 2025.
The substantial volume of natural gas secured through this contract is poised to fulfill a considerable share of BASF's natural gas needs in Europe. For BASF, natural gas serves a dual critical role: it acts as a primary energy source for its extensive manufacturing processes and as an indispensable raw material for the production of a wide array of key basic chemicals. These chemicals are the foundational components for countless everyday consumer goods, ranging from automotive interiors and high-performance sportswear to personal care products and advanced agricultural solutions.
Anders Opedal, President and Chief Executive Officer of Equinor, expressed his satisfaction with the reinforced partnership. “This agreement further strengthens our partnership with BASF. Natural gas not only provides energy security to Europe but also critical feedstock to European industries," stated Opedal. He further emphasized the environmental benefits of the supply, adding, "I am very happy that our gas also supports BASF’s efforts to reduce their carbon footprint. Gas from Norway comes with the lowest emissions from production and transportation.” This highlights a growing trend in energy procurement where the environmental footprint of the supplied resources plays a crucial role in purchasing decisions.
Dirk Elvermann, Chief Financial Officer and Chief Digital Officer of BASF SE, echoed Opedal's positive sentiment, emphasizing the reliability and competitive nature of the agreement. “We are very happy to enter into this long-term partnership with Equinor for the reliable supply of natural gas for BASF’s operations in Europe,” said Elvermann. He further noted the established trust between the two entities, stating, “Equinor is a trusted and valued partner. The supply agreement not only comes with competitive terms but also supports our sustainability targets.” This long-standing relationship, with Equinor having supplied gas and liquids to BASF for several years, undoubtedly facilitated the smooth conclusion of this significant agreement. The gas will be sold on market terms, reflecting a standard commercial arrangement.
The implications of this agreement extend beyond mere commercial transactions. In a geopolitical climate often marked by energy volatility, securing a stable and long-term supply from a reliable partner like Equinor provides BASF with enhanced operational predictability and resilience.
