SEATTLE (Oil Monster): A long-term contract for natural gas supply beginning in 2027 was struck by INEOS and Covestro with the goal of boosting industrial competitiveness in Europe. The joint venture enables Covestro to obtain natural gas from INEOS’s worldwide LNG supply for manufacturing operations. The strategic partnership enables European Covestro operations to receive a reliable feedstock supply through a stable and predictable natural gas supply source.
Supporting industry through the energy transition
David Bucknall, CEO of INEOS Energy, said: “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.”
Thorsten Dreier, Chief Technology Officer of Covestro, added, “Securing a stable, competitive and predictable gas supply is essential for our operations right now. 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 us as a company in the energy-intensive industry to transition towards an affordable renewable energy supply.”
US LNG supply to fuel European operations
Sempra Infrastructure will receive 1.4 million tonnes of LNG per year through a 20-year agreement between INEOS and Covestro from the US Gulf Coast facilities. Subject to this agreement, the companies aim to sustain their European production facilities to maintain a strong industrial structure throughout Europe.
Courtesy: www.manufacturingtodayindia.com
