Edison will buy U.S. LNG from 2028 under a 15-year agreement with a Shell subsidiary, as part of boosting Italy’s security of supply, the Italian energy group said on Wednesday.
Edison has signed an agreement with Shell International Trading Middle East Limited FZ to buy around 0.7 million tons per year of LNG from the United States, starting in 2028 and continuing for up to 15 years.
The Italian firm, part of France’s EDF Group, will purchase the gas on a Free on Board (FOB) basis, using its own fleet of LNG carriers, taking care of the collection of the LNG at source, its transport and unloading at 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.
Edison aims to diversify gas supply by opening up new routes, the executive added.
“This has enabled us to contribute to national energy security, providing rapid responses in recent times of crisis, thanks to the solid relationships we have built with sellers over the years,” Dubini said in a statement.
Edison currently imports about 14 billion cubic meters of natural gas per year into Italy, with import contracts with Qatar, Libya, Algeria, Azerbaijan, and the United States, meeting 23% of domestic demand.
“This long-term partnership underscores Edison’s commitment to expanding and enhancing the flexibility of its LNG and gas portfolio, while consolidating the United States as a strategic supply source,” the Italian company said.
Edison has supported the construction of the world’s first offshore regasification plant, off the coast of Rovigo in northeast Italy. The terminal has imported 6.4 billion cubic meters of gas per year from Qatar since 2009.
The deal with Shell for U.S. LNG will further diversify Italy’s gas supply and contribute to the EU buying more LNG from America, as per the trade deal.
By Tsvetana Paraskova for Oilprice.com
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