UK’s Ineos has signed a deal to supply natural gas to Germany’s Covestro.
According to a statement by Ineos, the natural gas deal is for up to eight years, starting in 2027.
“The agreement builds on Ineos’ newly established LNG supply chain, and both companies’ commitment to support European industrial competitiveness,” it said.
Covestro, which produces polymer materials, uses natural gas as a feedstock as well as an energy source.
The statement said that the partnership will enable the supply of natural gas sourced from Ineos’ global LNG portfolio, providing a “stable and predictable” feedstock and energy stream for Covestro’s European operations.
Ineos first entered the LNG sector in June 2022, signing a 20-year agreement with US LNG exporter Sempra Infrastructure, a unit of Sempra.
The firm agreed to buy about 1.4 million tonnes per year of LNG for 20 years from Sempra Infrastructure’s Port Arthur LNG project in Texas.
Starting in 2027, Ineos plans to deliver these Port Arthur LNG supplies to the planned onshore LNG import terminal in Brunsbüttel, Germany, where it also booked long-term capacity.
The facility, developed by German LNG Terminal at the mouth of the Elbe on the North Sea, will have a capacity of 8 bcm of natural gas per year.
Last year, Gasunie and RWE made the final investment decision on the onshore LNG import terminal in Brunsbüttel backed by the German government.
Besides LNG supply and regasification capacity, Ineos also chartered two LNG carriers from Japan’s shipping giant MOL to ship its contracted US LNG supplies to Germany.
