INEOS and Covestro have entered into a long-term agreement for the supply of natural gas, marking a significant step toward energy security and industrial stability in Europe. The deal, set to begin in 2027 and run for up to eight years, builds on INEOS’ growing liquefied natural gas (LNG) supply chain and underscores both companies’ commitment to supporting Europe’s industrial competitiveness.

Under the terms of the agreement, Covestro will receive natural gas from INEOS’ global LNG portfolio. The supply will serve as both a feedstock and energy source for Covestro’s operations across Europe. This partnership provides Covestro with a stable and predictable source of energy, helping to insulate its production activities from supply chain disruptions and price volatility.

The collaboration comes at a critical time as European industry continues to grapple with energy security challenges and the need to diversify energy sources. By leveraging INEOS’ LNG capabilities, the agreement offers a reliable alternative that supports Covestro’s transition strategy in an energy-intensive sector.

David Bucknall, CEO of INEOS Energy, said the agreement reflects the company’s role in supporting customers through the energy transition.

“Our goal is to supply customers with vital energy throughout the transition—not just at the end,” Bucknall said. “That means ensuring competitive hydrocarbon supplies remain available as alternatives develop. This long-term LNG deal with Covestro provides reliable, cost-effective energy to help our industrial partners navigate volatility and avoid disruptions.”

Thorsten Dreier, chief technology officer of Covestro, emphasized the importance of securing long-term gas supplies for the company’s operations.

“Having access to stable, competitive, and predictable gas is essential for our current operations,” Dreier said. “This agreement with INEOS provides the security we need to maintain production and contribute to the European economy. We appreciate INEOS’ proactive support for European industry and its role in addressing the region’s energy needs. This contract is a crucial part of our broader effort to shift toward an affordable, renewable energy future.”

The deal reinforces the shared goal of both companies to maintain a resilient and competitive manufacturing base in Europe. With natural gas remaining a vital part of the energy mix during the transition to renewables, strategic agreements such as this play a key role in securing industrial continuity.

INEOS entered the LNG market in June 2022 through a 20-year contract with Sempra Infrastructure, securing 1.4 million metric tons of LNG annually from the U.S. Gulf Coast.

INEOS is a global manufacturing company that produces essential materials used in everyday life. Its operations support a wide range of industries, including packaging, construction, automotive and healthcare. The company is committed to sustainable practices and continues to invest in innovative technologies aimed at reducing its environmental impact. Thorsten Dreier, chief technology officer of Covestro, emphasized the importance of securing long-term gas supplies for the company’s operations.