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Shell Signs Long-Term U.S. LNG Supply Deal With Italian Firm Edison
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Key Takeaways
Edison signed a 15-year LNG sales and purchase agreement with Shell starting in 2028.
The deal secures 0.7 million tons of U.S. LNG annually for the Italian utility firm.
Edison will use its own fleet for transport, boosting supply chain reliability and efficiency.
Shell plc (SHEL - Free Report) , a British energy giant, announced that Edison, a leading Italian utility firm, has entered into a liquefied natural gas (LNG) sales and purchase agreement with its subsidiary, Shell International Trading Middle East. Per the terms of the agreement, Edison will buy 0.7 million tons of U.S. LNG from Shell for 15 years on a free-on-board basis. Shell will begin supplying LNG from 2028, per the contract.
The Italian firm’s contract with Shell should enable it to expand its LNG and gas portfolio while enhancing flexibility to meet the growing demand for LNG. Furthermore, by securing U.S. gas supplies, the company aims to reinforce the United States’ position as a reliable supply source. Edison has also purchased LNG from Venture Global, a key LNG firm in the United States. In May this year, the Italian player received its first LNG cargo from Venture Global’s Calcasieu Pass facility in Louisiana.
Edison has also mentioned that it plans to use its own fleet to manage the logistics. This implies that Edison’s LNG carriers will collect the LNG at the source, transport it overseas and offload the same at the destination. This should improve the reliability and efficiency of Edison’s supply chain. According to the company, this is the second LNG supply source from the United States, which should contribute to energy security in Italy and help improve Edison’s long-term gas portfolio by enhancing its competitiveness.
Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. This suggests that Repsol is positioning itself in line with global energy transition needs.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.
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Shell Signs Long-Term U.S. LNG Supply Deal With Italian Firm Edison
Key Takeaways
Shell plc (SHEL - Free Report) , a British energy giant, announced that Edison, a leading Italian utility firm, has entered into a liquefied natural gas (LNG) sales and purchase agreement with its subsidiary, Shell International Trading Middle East. Per the terms of the agreement, Edison will buy 0.7 million tons of U.S. LNG from Shell for 15 years on a free-on-board basis. Shell will begin supplying LNG from 2028, per the contract.
The Italian firm’s contract with Shell should enable it to expand its LNG and gas portfolio while enhancing flexibility to meet the growing demand for LNG. Furthermore, by securing U.S. gas supplies, the company aims to reinforce the United States’ position as a reliable supply source. Edison has also purchased LNG from Venture Global, a key LNG firm in the United States. In May this year, the Italian player received its first LNG cargo from Venture Global’s Calcasieu Pass facility in Louisiana.
Edison has also mentioned that it plans to use its own fleet to manage the logistics. This implies that Edison’s LNG carriers will collect the LNG at the source, transport it overseas and offload the same at the destination. This should improve the reliability and efficiency of Edison’s supply chain. According to the company, this is the second LNG supply source from the United States, which should contribute to energy security in Italy and help improve Edison’s long-term gas portfolio by enhancing its competitiveness.
SHEL’s Zacks Rank & Key Picks
Currently, SHEL carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Repsol S.A. (REPYY - Free Report) , Antero Midstream Corporation (AM - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) . While Repsol sports a Zacks Rank #1 (Strong Buy), Antero Midstream and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.
Repsol is a global multi-energy company, involved in exploration and production activities as well as refining and marketing petroleum products. The company is also actively involved in transitioning toward cleaner and more sustainable energy solutions. This suggests that Repsol is positioning itself in line with global energy transition needs.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.