BASF/ENN in 15-year gas contract for Zhanjiang site
German materials firm BASF signed a 15-year contract with ENN Energy to purchase natural gas for its Zhanjiang site in China recently. This is an important step further in the clean energy partnership between the two parties.
Following the contract, ENN Energy will invest in the construction of the needed supporting natural gas gate stations and pipelines so as to ensure a stable natural gas supply to BASF’s site. It will also further enhance the clean energy supply capabilities of Donghai Island in the Zhanjiang area.
“This is a crucial milestone for BASF to secure one of the essential energies required for our Zhanjiang Verbund site. 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,” said Marko Murtonen, Senior Vice President, New Verbund Site China, BASF & General Manager, BASF Integrated Site (Guangdong) Co. Ltd.
“ENN Energy is committed to being a pioneer in leading digital and intelligent transformation, creating quality life, grounding innovation in the dual-carbon initiative, and serving smart cities. BASF is known as a leading global chemical company at the forefront of the industry in energy utilisation and environmental protection. The successful establishment of partnership with BASF represents the outcome of a deep dialogue and joint exploration between the two sides on the path of clean energy and sustainable development,” said Lu Xuesong, Assistant to the President, ENN Energy & General Manager, ENN Energy Guangdong.
The Zhanjiang site will be BASF’s largest investment to date with around EUR10 billion upon completion. It will be operated under the sole responsibility of BASF and will be the company’s third-largest site worldwide, following Ludwigshafen, Germany, and Antwerp, Belgium.
