BASF Secures Vital Natural Gas Supply with Landmark Equinor Deal
Chemical giant BASF and Norwegian energy powerhouse Equinor have solidified a significant strategic partnership, signing a ten-year natural gas supply agreement that will secure a substantial share of BASF's natural gas needs in Europe. This long-term contract, with deliveries set to commence on October 1, 2025, is a crucial development for European energy security and industrial stability.
The agreement was formally announced today, July 18, 2025, with senior executives from both companies highlighting the deal's importance for energy diversification, sustainability, and industrial resilience in a volatile global energy landscape.
A Decade of Secure Supply
Under the terms of the agreement, Equinor will supply up to 23 terawatt hours (TWh) of natural gas annually to BASF. This volume, equivalent to approximately 2 billion cubic meters, represents a significant portion of the natural gas required for BASF's extensive operations across Europe.
Dirk Elvermann, Chief Financial Officer and Chief Digital Officer of BASF SE, expressed satisfaction with the agreement: "We are very happy to enter into this long-term partnership with Equinor for the reliable supply of low-carbon natural gas for BASF's operations in Europe. Equinor is a trusted and valued partner. The supply agreement not only comes with competitive terms but also supports our sustainability targets."
For BASF, natural gas is indispensable, serving both as an energy source and a critical raw material in the production of basic chemicals. This long-term partnership will play a vital role in the company's strategy to diversify its energy and raw materials portfolio, ensuring stability for its wide range of products that are essential components in consumer goods like car interiors, sportswear, personal care items, and agricultural solutions.
Equinor's Commitment to European Energy Security
Anders Opedal, President and Chief Executive Officer of Equinor, underscored the broader implications of the deal: "This agreement further strengthens our partnership with BASF. Natural gas not only provides energy security to Europe but also critical feedstock to European industries." He added, "I am very happy that our gas also supports BASF's efforts to reduce their carbon footprint. Gas from Norway comes with the lowest emissions from production and transportation."
Equinor has been a long-standing supplier of gas and liquids to BASF, and this renewed agreement deepens that relationship. The deal also reinforces Norway's role as a reliable and crucial energy provider to Europe, particularly after the significant shifts in energy supply chains in recent years.
Impact on the European Market
This ten-year agreement provides much-needed long-term predictability for a major European industrial player like BASF, which has faced significant energy price volatility and supply concerns in recent years. By securing a substantial and stable gas supply from a trusted Norwegian source, BASF can better plan its production, manage costs, and continue its contributions to the European economy.
The agreement also highlights the ongoing importance of natural gas as a bridge fuel and a vital feedstock for heavy industries in Europe, even as the continent transitions towards renewable energy sources. It demonstrates how strategic partnerships are being forged to navigate the complexities of energy security and sustainability in the current global climate. The gas is being sold on market terms, reflecting current commercial realities.
