Italian utility company Edison has signed an agreement with Shell International Trading Middle East, the UAE-based subsidiary of the U.K.-headquartered energy giant Shell, for the sale and purchase of liquefied natural gas (LNG).
Under the terms of the contract, Edison will get around 0.7 million tonnes per annum (mtpa) of LNG from the United States, starting in 2028 and lasting for up to 15 years. The gas will be purchased on a free on board (FOB) basis.
The Italian player believes the deal underscores its commitment to expanding and enhancing the flexibility of its LNG and gas portfolio, while consolidating the U.S. as a strategic supply source. Edison will use its own fleet of LNG carriers to collect the LNG at source, and then transport and unload it at the destination.
“The opening of this second channel from the United States is another piece in our industrial strategy, aimed at increasing the country’s security of supply and strengthening the long-term competitiveness and flexibility of our long-term portfolio,” said Fabio Dubini , Executive Vice President of Gas&Power Portfolio Management&Optimisation at Edison.
Noting that Edison’s goal is to continue diversifying by opening up new routes, Dubini explained that his company aims to maintain a share of at least 20% of the Italian market by 2030. The firm intends for its portfolio to be able to adapt supply to the demands of international markets and customers, while reducing the associated geopolitical risks.
In May, the Italian player received its first LNG shipment from the Calcasieu Pass plant in Cameron Parish, Louisiana, operated by Venture Global. The LNG carrier Elisa Aquila arrived in Italy and unloaded approximately 165,000 liquid cubic meters (cbm) of LNG at the Piombino terminal.