INEOS turns to US gas to bolster Europe’s supply resilience

London-based INEOS Energy has signed a long-term deal with U.S. energy company Kinetik Holdings to supply up to 0.5 million tons per annum (MTPA) of natural gas to Europe starting in 2027. The supply, enough to heat cities like Manchester or Cologne, will use a TTF Netback pricing mechanism, tying U.S. gas prices directly to Europe’s benchmark market and helping stabilize costs. INEOS says the move strengthens Europe’s energy security after years of under-investment and volatility. Kinetik views the agreement as a way to diversify pricing options and expand market access for Permian Basin producers. INEOS recently expanded its U.S. footprint by acquiring CNOOC’s Gulf of Mexico assets to boost its energy portfolio. Impact on U.S. Manufacturers: - Increased gas exports could boost demand for U.S. natural gas production infrastructure and equipment. - Energy producers and service companies in the Permian Basin may see higher revenues and investment. - Manufacturers could face slightly higher domestic gas prices if export demand tightens supply. - However, stronger global ties may support U.S. industrial growth through long-term contracts and stability. - Overall, this deal enhances the U.S.’s role as a key energy supplier, benefiting the broader manufacturing and energy sectors.