INEOS and Kinetik sign long-term U.S. gas deal to ensure Europe’s energy security, competitiveness, and stable industrial supply.
INEOS Energy has finalized a significant long-term agreement with U.S.-based Kinetik Holdings Inc., aimed at supplying Europe with natural gas starting in 2027. The strategic deal is designed to ensure a steady flow of energy to European homes, factories, and businesses, while keeping prices competitive amid ongoing market volatility. By sourcing new, reliable gas supplies from the United States, INEOS Energy is actively addressing Europe’s ongoing energy supply challenges.
Under this agreement, INEOS Energy will receive up to 0.5 million tonnes per annum (MTPA) of natural gas. To put this in perspective, this volume is sufficient to heat over 500,000 homes for an entire year—roughly the equivalent of the annual energy needs of a major city such as Manchester, Antwerp, or Cologne. This infusion of U.S. gas comes at a critical time when Europe continues to face supply constraints and fluctuating energy prices, driven by years of under-investment, policy uncertainty, and geopolitical tensions.
The contract incorporates a Title Transfer Facility (TTF) Netback pricing mechanism. This innovative pricing model links the cost of U.S. natural gas sourced through Kinetik’s infrastructure directly to Europe’s benchmark gas market. By aligning U.S. supply prices with European market conditions, the mechanism reduces exposure to sudden supply disruptions and mitigates the risk of extreme price swings. It provides both predictability and market-responsive pricing, giving European industries a more stable environment in which to plan operations.
David Bucknall, CEO of INEOS Energy, emphasized the significance of this deal, stating, “Europe has suffered due to insufficient energy security. This agreement brings more U.S. gas into Europe, helping keep homes warm, factories operational, and electricity flowing at competitive prices. It benefits industry, supports jobs, and strengthens energy security.” He further noted that the collaboration with Kinetik is part of INEOS Energy’s broader strategy to build a diverse and resilient energy portfolio, ensuring that Europe has secure gas supplies for decades ahead.
Jamie Welch, President and CEO of Kinetik, commented on the partnership, highlighting that the deal broadens access to attractive gas pricing options for producers in the Permian Basin. He described the collaboration as a demonstration of Kinetik’s commitment to delivering innovative and value-added solutions to its customers while supporting long-term energy security for European markets.
The agreement underscores both INEOS Energy and Kinetik’s dedication to sustaining Europe’s energy-intensive sectors. By securing predictable and competitive natural gas supply, the partnership strengthens market stability, supports industrial planning, and enhances the continent’s overall energy resilience. This collaboration marks a strategic step toward mitigating Europe’s energy challenges while ensuring continuity for households, businesses, and industries alike.
