Ludwigshafen, Germany / Stavanger, Norway – July 18,2025 –
Chemical giant BASF and Norwegian energy major Equinor today confirmed a strategic partnership, signing a significant ten-year natural gas supply agreement that will bolster Europe’s energy security and support BASF’s ambitious carbon footprint reduction targets. The deal, set to commence on October 1st, 2025, will see Equinor supply up to 23 terawatt hours (TWh) of natural gas annually to BASF’s operations in Europe.
The agreement secures a substantial share of BASF’s natural gas needs across its European facilities, providing a reliable and long-term energy source for the German-based multinational. Natural gas is not only a vital energy input for BASF but also a critical raw material in the production of a wide range of basic chemicals, which are essential components in numerous everyday consumer goods.
Dirk Elvermann, Chief Financial Officer and Chief Digital Officer of BASF SE, highlighted the strategic importance of the partnership. “We are very happy to enter into this long-term partnership with Equinor for the reliable supply of natural gas for BASF’s operations in Europe,” said Elvermann. “Equinor is a trusted and valued partner. The supply agreement not only comes with competitive terms but also supports our sustainability targets.”
For Equinor, the agreement reinforces its position as a crucial energy provider to Europe. Anders Opedal, President and CEO of Equinor, emphasized the dual benefits 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. I am very happy that our gas also supports BASF’s efforts to reduce their carbon footprint.”
BASF has committed to ambitious climate protection goals, aiming to achieve net-zero CO2 emissions by 2050 and to reduce its greenhouse gas emissions worldwide by 25 percent by 2030 compared to 2018 levels. While natural gas is a fossil fuel, long-term supply agreements with partners like Equinor can provide stability for industrial operations as they transition towards lower-carbon processes and integrate more renewable energy sources. BASF’s strategy involves diversifying its energy and raw materials portfolio and continuously improving its production efficiency to reduce emissions.
The natural gas supplied under this new contract will be sold on market terms. This long-term commitment underscores the ongoing reliance of major European industries on natural gas, even as the continent accelerates its transition towards cleaner energy sources. The deal provides both companies with increased stability and predictability in a global energy market that has experienced significant volatility in recent years. Equinor has been a long-standing supplier of gas and liquids to BASF, further cementing this expanded partnership.
