INEOS and Covestro Sign Long-Term Agreement for Natural Gas Supply
INEOS and Covestro have recently entered into a significant long-term agreement for the supply of natural gas, set to last for up to eight years starting in 2027. This partnership underscores both companies’ dedication to supporting European industrial competitiveness and sustainability goals.
As a key component of Covestro’s operations, natural gas serves both as a feedstock and an energy source. Through this collaboration, Covestro will benefit from a stable and predictable supply of natural gas sourced from INEOS’ global LNG portfolio. This strategic move ensures a reliable feedstock and energy stream for Covestro’s European operations, contributing to operational efficiency and environmental sustainability.
INEOS Energy CEO’s Perspective
David Bucknall, CEO of INEOS Energy, emphasized the importance of providing consistent energy solutions throughout the ongoing energy transition. He highlighted the role of competitive hydrocarbon supplies in supporting industrial partners amidst evolving energy landscapes, stating, “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.”
Covestro’s Commitment to Sustainability
Thorsten Dreier, Chief Technology Officer of Covestro, expressed the company’s focus on securing a stable, competitive, and predictable gas supply to sustain their operations and contribute to the European economy. He praised INEOS for their dedication to supporting European industry and addressing energy challenges proactively. Dreier added, “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 our transition as a company in the energy-intensive industry towards an affordable renewable energy supply.”
Overall, the long-term agreement between INEOS and Covestro signifies a strategic move towards sustainable energy practices and operational resilience. By securing a reliable natural gas supply, both companies are poised to enhance their competitiveness and contribute to a greener industrial landscape in Europe.