Shell plc (SHEL Quick QuoteSHEL - Free Report) is strengthening its position in the global liquefied natural gas (“LNG”) market through a new multi-year supply agreement with MET International, the trading and wholesale arm of Swiss-based integrated energy company MET Group. According to Offshore Energy, Shell will supply LNG to MET from its U.S. portfolio under a new sale and purchase agreement (“SPA”), further expanding both companies’ long-standing cooperation in LNG and gas trading.

The agreement is strategically significant for Shell as European energy buyers continue to seek reliable and diversified sources of natural gas. For investors, the latest deal highlights Shell’s ability to leverage its global LNG portfolio, trading capabilities and customer relationships to capture long-term opportunities in the international gas market.

Shell Expands U.S. LNG Supply Relationship

Under the new agreement, Shell will supply MET with LNG from its U.S. portfolio over a multi-year period. The arrangement will provide MET with additional access to U.S. LNG while supporting its strategy of supplying European customers with diversified gas sources.

The deal builds on an established relationship between Shell and MET. The companies signed a 10-year free-on-board (“FOB”) LNG purchase agreement in July 2024, providing MET with long-term access to U.S. LNG and strengthening its supply diversification strategy. Earlier this year, the companies also signed a memorandum of understanding (MoU) in Washington, D.C., to explore additional LNG supply and trading opportunities aimed at enhancing Europe’s energy security. The latest SPA is one outcome of that cooperation.

For Shell, the continued expansion of this relationship provides another avenue to market LNG from its U.S. portfolio. It also demonstrates the company’s focus on building long-term relationships with customers and counterparties across key global gas markets.

Europe’s LNG Demand Supports Shell

The latest agreement comes as European energy companies increasingly focus on diversifying their gas procurement strategies. MET has emphasized the growing importance of U.S. LNG for its business and customers, citing the ability to broaden sourcing options and strengthen supply security.

U.S.-linked LNG can also offer buyers greater pricing flexibility. MET noted that contracts indexed to the U.S. Henry Hub benchmark can provide an alternative to exposure to European gas benchmarks and help diversify pricing structures.

This environment is favorable for Shell, which operates one of the world's leading integrated LNG businesses. Shell says its LNG business was involved in around 16% of global LNG demand in 2025 and has approximately 44 million tons of equity LNG capacity. The company is involved across the LNG value chain, including production, liquefaction, trading, shipping, regasification and delivery to customers.

Shell’s scale across the LNG value chain is particularly important because the business is not dependent solely on producing natural gas. Its trading and marketing operations allow the company to optimize LNG flows between different regions based on supply, demand and market conditions.

Long-Term LNG Outlook Remains Supportive

Shell’s latest LNG outlook also provides a favorable backdrop for its strategy. According to Shell, global LNG demand is expected to rise around 65% from 2025 levels to nearly 700 million tons annually by 2050. The company expects the United States to remain the largest LNG exporter, with U.S. exports projected to nearly double by 2030.

The outlook underscores the importance of securing long-term LNG supplies as global energy markets evolve. Shell has noted that long-term agreements account for roughly two-thirds of total LNG trade, highlighting the importance of contracted supply arrangements for both buyers and sellers.

Against this backdrop, Shell’s new agreement with MET provides another example of how it is positioning the LNG business for continued international demand. The transaction also connects U.S. LNG supply with European customers, an important trade route as Europe continues to prioritize supply diversification.

What It Means for Shell Investors

The new agreement reinforces several positives for Shell’s LNG strategy. First, it strengthens long-term customer relationships. The latest SPA follows the 2024 10-year FOB agreement and the 2026 MoU between Shell and MET. This progression indicates that the relationship is expanding beyond a single supply transaction.

Second, it supports Shell’s U.S. LNG portfolio. By securing another customer for LNG sourced from its U.S. portfolio, Shell is increasing commercial opportunities for the supply base. The company can use its global trading platform to manage LNG volumes and respond to demand across different markets.

Third, it highlights the value of Shell’s integrated LNG model. Shell’s participation across production, shipping, trading and marketing gives it greater flexibility to optimize its portfolio. This is particularly valuable in a market where regional pricing differences, supply disruptions and changing demand patterns can create trading opportunities.

The agreement’s financial terms and LNG volumes were not disclosed in the Offshore Energy report, so the direct earnings impact cannot be quantified at this stage. Nevertheless, the strategic value of the deal is clear, particularly as LNG demand is expected to increase over the longer term.

Bottom Line

Shell’s new multi-year LNG supply agreement with MET Group strengthens its U.S.-to-Europe LNG strategy and further expands an established commercial relationship. The deal gives MET additional access to U.S. LNG while providing Shell with another long-term customer for its U.S. portfolio.

For investors, the development reinforces Shell’s position as a major global LNG player. With LNG demand projected to grow significantly through 2050 and U.S. exports expected to expand, Shell’s broad portfolio and integrated trading capabilities should remain important competitive advantages.

The latest agreement therefore represents a positive strategic development for Shell, particularly as European buyers continue to prioritize supply security, portfolio diversification and flexible LNG procurement.

SHEL's Zacks Rank & Key Picks

Currently, SHEL has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might consider some better-ranked stocks, such as Par Pacific (PARR Quick QuotePARR - Free Report) , Delek US Holdings (DK Quick QuoteDK - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International (OII Quick QuoteOII - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Par Pacific is valued at $4.24 billion. It is a diversified energy company that owns and operates petroleum refineries, logistics assets and retail fuel businesses across the United States. Par Pacific focuses on refining, transporting and marketing fuel products while serving regional markets with reliable energy solutions.

Delek US Holdings is valued at $4.66 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.

Oceaneering International is valued at $5.08 billion. It is a global technology and engineering company. Oceaneering International provides subsea robotics, offshore services, engineered products and advanced solutions to the energy, defense, aerospace and other industries.