SEATTLE (Oil Monster): INEOS Energy has entered into a long-term natural gas supply agreement with U.S.-based Kinetik Holdings Inc., securing up to 0.5 million tonnes per annum (MTPA) of natural gas exports to Europe beginning in 2027. The volume is sufficient to heat more than 500,000 households annually.
The partnership employs a Title Transfer Facility (TTF) Netback pricing structure, which links U.S. natural gas prices directly to Europe’s benchmark gas market. This model ensures that gas prices reflect European market trends while mitigating the impact of supply disruptions and price volatility.
The agreement represents a strategic move to strengthen Europe’s energy security, diversify supply sources, and stabilize gas prices amid fluctuating global energy markets. It also marks another step in INEOS Energy’s broader strategy to enhance reliable transatlantic energy trade.
David Bucknall, CEO of INEOS Energy, emphasized that the deal will help deliver more American gas to Europe, supporting energy reliability, industrial operations, and household needs at competitive prices. “This agreement benefits consumers, creates jobs, and ensures the region’s long-term energy stability,” Bucknall stated.
Jamie Welch, President and CEO of Kinetik Holdings, said the partnership underscores Kinetik’s commitment to innovative, value-driven solutions for producers in the Permian Basin, one of the most prolific energy-producing regions in the United States.
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