Equinor and BASF Announce 10-Year Natural Gas Supply Deal

Equinor has secured a 10-year deal to supply 2 million cubic meters of natural gas annually to BASF starting October 2025. Analyst price targets suggest a potential downside of 6.04% from the current stock price. Equinor holds a "Hold" consensus rating among brokers. The deal is expected to significantly contribute to BASF's energy needs across Europe and support their sustainability goals.

Equinor has secured a significant 10-year natural gas supply deal with BASF, starting from October 2025. The agreement will see Equinor supply approximately 2 million cubic meters of natural gas annually to BASF, a substantial portion of the company's energy needs in Europe [1][2][3].

The strategic partnership underscores the importance of natural gas as a key feedstock for European industries, particularly in the production of chemicals and fertilizers. BASF, which uses natural gas both as an energy source and a raw material, will benefit from this long-term supply agreement, which supports its sustainability targets [1][3].

According to Anders Opedal, President and CEO of Equinor, "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" [1].

The deal is expected to contribute to BASF's strategy to diversify its energy and raw materials portfolio. The gas will be sold on market terms, ensuring competitive pricing for BASF. Dirk Elvermann, Chief Financial Officer and Chief Digital Officer of BASF SE, expressed satisfaction with the partnership, stating, "We are very happy to enter into this long-term partnership with Equinor for the reliable supply of low-carbon 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" [1][3].

Analysts have forecasted a potential downside of 6.04% from the current stock price for Equinor, with an average brokerage recommendation of "Hold" among four brokerage firms [2]. Despite the potential downside, the deal is seen as a significant contribution to Equinor's long-term growth and sustainability goals.

References:
[1] https://www.equinor.com/news/20250718-basf-and-equinor-confirm-strategic-partnership-and-sign-ten-year-natural-gas-supply-agreement
[2] https://www.gurufocus.com/news/2988314/equinor-eqnr-secures-10year-natural-gas-supply-deal-with-basf
[3] https://www.marketscreener.com/news/basf-strategic-gas-agreement-with-equinor-ce7c5cdedc89fe26