INEOS Energy has signed a long-term deal with US energy company, Kinetik Holdings, to supply natural gas to Europe from 2027.
The agreement covers the delivery of up to 0.5 mill tonnes per annum of natural gas.
Europe continues to face tight supplies and volatile prices following years of under-investment and policy uncertainty. INEOS Energy is taking practical steps to fix that by securing new, reliable energy flows from America, the company claimed.
The agreement is based on the TTF Netback pricing mechanism, which directly links the price of US natural gas sourced from Kinetik’s infrastructure to Europe’s benchmark gas market.
This tracks European market conditions while reducing exposure to supply shocks and wild price swings, INEOS claimed.
David Bucknall, CEO INEOS Energy, said: “Europe has paid a heavy price for failing to secure its own energy. We’re doing something about it. This deal will bring more US gas into Europe, helping to keep the lights on, factories running and homes warm, at competitive prices. It’s good for industry, good for jobs and good for energy security.
“This agreement with Kinetik is part of our plan to build a diverse and reliable energy portfolio. Europe needs secure supplies of gas for decades to come – this deal helps make that happen,” he said.
Jamie Welch, Kinetik’s President & CEO, added: “Kinetik’s strategic partnership with a global chemicals leader like INEOS Energy broadens and diversifies attractive natural gas pricing options for our producer customers.
“This arrangement exemplifies our commitment to delivering innovative and value-added solutions to producers in the Permian Basin,” he said.
