INEOS Energy, the energy division of the UK-headquartered global chemical and manufacturing group INEOS, has signed a major long-term deal with U.S. based and NYSE-listed energy company Kinetik Holdings Inc. (Kinetik) to supply natural gas to Europe from 2027.
The new agreement will deliver up to 0.5 MTPA of natural gas, which is enough to heat more than 500,000 homes for a year, roughly equivalent to the annual demand of a city the size of Manchester, Antwerp or Cologne.
Europe continues to face tight supplies and volatile prices following years of under-investment and policy uncertainty, so INEOS Energy is taking practical steps to fix that by securing new energy flows from America.
The agreement between INEOS Energy and Kinetek uses a Title Transfer Facility (TTF) Netback pricing mechanism, which directly links the price of U.S. natural gas sourced from Kinetik’s infrastructure to Europe’s benchmark gas market.
David Bucknall, chief executive officer of 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 U.S. 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.”
