Germany’s BASF SE has signed its first deal to buy liquefied natural gas as the chemical producer steps up efforts to diversify supplies amid Europe’s wider push to sever links with Russia.

Starting from the middle of 2026, BASF will receive about 800,000 tons of LNG a year from Cheniere in an agreement that runs through 2043, the U.S. exporter said in an August 22 statement. The deal is subject to a final investment decision on the first train of the Sabine Pass expansion project in Louisiana.

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The length of the deal underlines Germany’s growing commitment to long-term deals, something it was previously reluctant to pursue in its transition to a low-carbon economy. U.S. LNG has helped fill gaps left by reduced pipeline supplies from Russia, which provided more than half of Germany’s gas before Moscow’s war with Ukraine.

“By establishing our own dedicated LNG supply chain with Cheniere, we are diversifying our energy and raw materials portfolio at a time of critical changes in the European gas market, which is marked by increased demand and volatile prices for LNG,” said Dirk Elvermann, BASF’s chief financial officer.

The sales and purchase agreement is on a free-on-board basis and linked to the U.S. Henry Hub price plus a fixed liquefaction fee.