- New supply agreement with Kinetik will deliver enough gas to heat over 500,000 homes a year helping cut costs and strengthen energy security for Europe.
- The deal strengthens Europe’s energy resilience by linking U.S. natural gas supply to European markets.
- Builds on INEOS Energy’s growing global LNG and natural gas portfolio.
- Agreement starting in 2027 ensures stable and competitive supply.
INEOS Energy has today signed a major long-term deal with U.S. energy company Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik”), to supply natural gas to Europe from 2027, a move that will help keep Europe’s homes warm, factories running and prices competitive.
The 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. INEOS Energy is taking practical steps to fix that by securing new, reliable energy flows from America.
The agreement 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. This tracks European market conditions while reducing exposure to supply shocks and wild price swings.
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 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.”
“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.”
Jamie Welch, President & CEO of Kinetik, said: “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.”
This agreement highlights both companies’ commitment to ensuring continuity, competitiveness and energy security for Europe’s energy-intensive industries. By securing predictable supply, INEOS Energy and Kinetik are helping to stabilise markets, support industrial planning, and reinforce the region’s energy resilience.
ENDS
Press contacts.
INEOS PR +44 207 193 9030 ineos@firstlightgroup.io
Peter Hindsberger INEOS Energy + 45 30186697 peter.hindberger@ineos.com
Richard Longden INEOS Group +41 799 626 123 richard.longden@ineos.com
Note to editors.
The Title Transfer Facility (TTF) in the Netherlands is Europe’s main gas trading hub and sets the benchmark price for wholesale gas, much like Brent Crude does for oil. A Netback deal simply means the U.S. gas is sold at a price linked to that European benchmark, minus the cost of shipping and handling it across the Atlantic.
About INEOS Energy:
INEOS Energy is the energy division of INEOS, a global chemical and manufacturing group. INEOS Energy operates, produces, trades and supplies energy and power, with a focus on supporting the energy transition while ensuring essential supply to global customers. The business manages a diversified portfolio of energy assets across the UK, Denmark and the US, as well as global LNG and natural gas sourcing.
About Kinetik Holdings Inc.:
Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com