BASF Signs Liquefied Natural Gas Purchase Agreement with Cheniere Energy
Aug. 29, 2023
LNG deliveries to BASF are scheduled to begin in 2026 and will run through 2043.
By Chemical Processing Staff
Looking to secure a stable supply of energy for its European market, BASF has has entered into a long-term liquefied natural gas purchase agreement with Cheniere Energy Inc.
BASF has agreed to purchase up to approximately 800,000 metric tons annually of liquefied natural gas, or LNG, from Cheniere’s marketing subsidiary through 2043, Cheniere said in a statement released Aug. 22. The supply of LNG to BASF will be begin in mid-2026, subject to the approval of the initial liquefaction facility becoming operational within Cheniere's Sabine Pass Liquefaction expansion project off the Gulf Coast.
“By establishing our own dedicated LNG supply chain with Cheniere, we are diversifying our energy and raw materials portfolio at a time of critical changes in the European gas market, which is marked by increased demand and volatile prices for LNG,” said Dirk Elvermann, BASF’s chief financial officer, in a prepared statement. “While we are reducing our dependence on fossil fuels to reach our goal of net zero CO2 emissions by 2050, this agreement will ensure reliable supply of natural gas at competitive terms.”
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