INEOS and Covestro Forge Strategic Long-Term Natural Gas Agreement to Strengthen European Industrial Competitiveness

INEOS and Covestro Forge Strategic Long-Term Natural Gas Agreement to Strengthen European Industrial Competitiveness

(IN BRIEF) INEOS and Covestro have entered into a long-term natural gas supply agreement lasting up to eight years, ensuring stable and predictable energy for Covestro’s European operations. The agreement, set to begin in 2027, supports both companies’ goals to strengthen European industrial competitiveness and energy security. By leveraging INEOS’ global LNG portfolio, the partnership aims to provide reliable energy, addressing both feedstock and energy requirements for Covestro. This deal aligns with the broader European energy strategy and highlights the importance of secure, affordable energy for Europe’s manufacturing sectors.

(PRESS RELEASE) LEVERKUSEN, 1-May-2025 — /EuropaWire/ — INEOS and Covestro have announced a major long-term agreement for the supply of natural gas, marking a significant milestone in their collaboration to ensure the energy security of European industries. The agreement, which will span up to eight years beginning in 2027, builds upon INEOS’ newly established LNG supply chain and supports both companies’ commitment to strengthening the industrial base in Europe.

Under this partnership, Covestro will benefit from a stable and predictable supply of natural gas, sourced from INEOS’ global LNG portfolio. Natural gas serves as both a feedstock and an energy source for Covestro’s operations. By securing this long-term supply, Covestro can ensure uninterrupted operations across its European plants, while also contributing to Europe’s broader goal of energy diversification and security.

David Bucknall, CEO of INEOS Energy, emphasized the company’s mission to provide crucial energy to customers during the energy transition: “Our goal is to supply essential energy throughout the entire transition period, not just at the tail end. This agreement with Covestro exemplifies that commitment, delivering reliable, cost-effective energy to industrial partners facing volatility and avoiding energy shortages.”

Thorsten Dreier, Chief Technology Officer at Covestro, stated: “Having a stable and competitive natural gas supply is crucial for our production. This deal with INEOS ensures long-term security and aligns with our objective to maintain production capacity in Europe, while also contributing to the region’s economy. This contract is a significant step in transitioning towards a more affordable renewable energy future, while maintaining competitiveness in the energy-intensive sector.”

The collaboration between INEOS and Covestro not only addresses the immediate energy needs of these industrial leaders but also reinforces the companies’ collective efforts to secure a sustainable and competitive future for European manufacturing. The deal represents a proactive approach to Europe’s energy challenges and reflects the strategic importance of a reliable gas supply in ensuring ongoing industrial growth.

INEOS, which entered the LNG market in June 2022, has continued to expand its presence in the sector through a 20-year agreement with Sempra Infrastructure, committing to an annual supply of 1.4 million tonnes of LNG from the U.S. Gulf Coast.

About INEOS:
INEOS is a global manufacturing company making the products that are essential to modern life. Its businesses produce materials that are used across a wide variety of sectors, including packaging, construction, automotive, and healthcare. INEOS is committed to sustainable operations and investing in innovative technologies to reduce its environmental footprint.

About Covestro: 
Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.

The company is geared completely to the circular economy. In addition, Covestro aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group’s Scope 3 emissions are also set to be climate neutral by 2050. Covestro generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).

Forward-Looking Statements 
This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Media Contacts:

Markus Kleine-Beck
Global Trade Media Relations
markus.kleine-beck@covestro.com
+49 173 2320 686

Tina Stockhausen
Corporate Messaging & Content, Covestro
tina.stockhausen@covestro.com
+49 172 130 6043

SOURCE: Covestro AG