BASF Inks gas deal with ENN Energy for Zhanjiang Verbund site

German chemical company BASF on April 5 announced the signing of a 15-year agreement with China's ENN Energy for the procurement of natural gas for its Zhanjiang Verbund site in Guangdong province. 

As part of the agreement, ENN Energy will make investments in the construction of essential natural gas gate stations and pipelines to facilitate the delivery of natural gas to the Zhanjiang Verbund site. This investment is aimed at ensuring a consistent and reliable supply of natural gas, which is a vital fuel and raw material source for BASF's operations.

“As one of the important fuels and raw material sources, natural gas plays a significant role in the energy and raw material balance for BASF’s Zhanjiang Verbund site in both its construction phase and operation phase,” Marko Murtonen, general manager, BASF Integrated Site (Guangdong) Co., said. 

The Zhanjiang Verbund site represents BASF's largest investment to date, with an estimated capital outlay of around €10bn upon completion. Operated solely by BASF, the site will be the company's third-largest Verbund site globally, following Ludwigshafen in Germany and Antwerp in Belgium.

Last year, ENN signed a 20-year LNG agreement with Cheniere Energy. ENN will purchase approximately 1.8mn tonnes/year of LNG from Cheniere Marketing on a free-on-board, starting in mid-2026.