BASF and China's ENN Secure 15-Year Gas Supply Agreement

BASF has recently inked a significant 15-year contract with ENN Energy, marking a pivotal step in their collaborative journey towards cleaner energy solutions. The agreement entails the procurement of natural gas by BASF for its Zhanjiang Verbund site, emphasizing the strategic importance of sustainable energy practices in their operations. This partnership underscores a shared commitment to environmental stewardship and innovation in the energy sector.

As part of the deal, ENN Energy will make substantial investments in the construction of essential infrastructure, including natural gas gate stations and pipelines. These investments are aimed at ensuring a consistent and reliable supply of natural gas to BASF's Zhanjiang Verbund site. Additionally, this initiative is poised to bolster the clean energy infrastructure of Donghai Island in the Zhanjiang region, aligning with broader sustainability objectives.

Marko Murtonen, Senior Vice President of New Verbund Site China at BASF and General Manager of BASF Integrated Site (Guangdong) Co. Ltd., emphasized the significance of this milestone in securing vital energy resources for the Zhanjiang Verbund site. He highlighted the pivotal role of natural gas as a crucial fuel and raw material source, essential for maintaining the energy and raw material equilibrium throughout the construction and operational phases of the site. Murtonen expressed delight in the successful establishment of a long-term partnership with ENN Energy, affirming BASF's commitment to establishing the Zhanjiang Verbund site as a beacon of sustainable production. He expressed confidence that this partnership will not only yield mutual benefits but also contribute to elevating Donghai Island into a premier industrial cluster, fostering a sustainable future for Zhanjiang.

Lu Xuesong, Assistant to the President of ENN Energy and General Manager of ENN Energy Guangdong, highlighted ENN Energy's dedication to spearheading digital and intelligent transformation, enhancing living standards, fostering innovation within the dual-carbon initiative, and supporting smart city development. Meanwhile, BASF's renowned status as a global chemical leader is underscored by its commitment to advancing energy efficiency and environmental preservation. Xuesong emphasized that the fruitful partnership between ENN Energy and BASF is the result of extensive dialogue and collaborative exploration toward promoting clean energy and sustainable development.

Expressing ENN Energy's unwavering commitment to the partnership with BASF, Xuesong reiterated the belief that this collaboration will mutually benefit both parties and foster joint growth. Furthermore, he emphasized the alignment of this partnership with China's low-carbon strategy, affirming its positive contribution to advancing dual-carbon objectives and promoting sustainable progress.

The Zhanjiang Verbund site represents a monumental investment by BASF, estimated at approximately €10 billion upon completion. Positioned as BASF's largest investment endeavor to date, the Zhanjiang site will operate under the sole purview of BASF, solidifying its position as the company's third-largest Verbund site globally, following sites in Ludwigshafen, Germany, and Antwerp, Belgium.