Chemical company BASF has entered into a strategic ten-year agreement with Equinor, securing an annual supply of up to 23 terawatt-hours of natural gas, equivalent to two billion cubic metres.

This deal will provide a significant portion of BASF's natural gas requirements in Europe. Deliveries are scheduled to commence on 1 October 2025.

Equinor president and CEO Anders Opedal said: “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. Gas from Norway comes with the lowest emissions from production and transportation.”

Natural gas serves a dual purpose for BASF, acting as both an energy source and a raw material for producing essential chemicals.

The deal aligns with BASF's objective of diversifying its energy and raw materials portfolio, ensuring competitive terms and supporting the company's sustainability goals.

BASF chief financial officer and chief digital officer Dirk Elvermann said: “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.

“Equinor is a trusted and valued partner. The supply agreement not only comes with competitive terms but also supports our sustainability targets.”

BASF's diverse portfolio includes solutions for consumer goods including sportswear, car interiors, personal care items and agricultural products.

The new contract follows Equinor's recent deal with Centrica to supply natural gas to the UK over the next ten years in a contract valued at around £20bn ($27.11bn).