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07 Apr 2024

BASF Agrees 15-Year Gas Supply Deal with China's ENN

07 Apr 2024  by reuters   

Chinese gas importer and distributor ENN Energy's logo is seen at Gastech 2023 in Singapore September 7, 2023. REUTERS/Florence Tan/File Photo Purchase Licensing Rights
German chemicals giant BASF (BASFn.DE), opens new tab said on Friday it had agreed to buy natural gas from Chinese gas company ENN Energy Holdings under a 15-year supply contract.

ENN will supply the fuel to BASF's integrated chemicals complex in Zhanjiang in Guangdong province, BASF said in a brief statement posted on its WeChat platform, without specifying the volume of the deal.

Under the agreement, ENN will invest and build a gas pipeline to supply the BASF plant.

"Natural gas is a key fuel and feedstock for both the construction and operation stage of the Zhanjiang base," Marko Murtonen, general manager of the Guangdong venture was cited as saying.

The 10-billion-euro ($10.8 billion) chemical complex, BASF's third-largest globally once complete, is due to be fully operational by 2030.

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