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Edison Signs 15-Year Shell Deal for 0.7 Million Tonnes Per Year of U.S. LNG

FOB supply gives Edison flexibility to replace expiring pipeline volumes with cargoes it can redirect across markets.

General view of EDF's Italian subsidiary Edison thermoelectric power plant in Marghera, Italy, January 25, 2023. Edison/Handout via REUTERS/File Photo
Elisa Aquila at the Piombino terminal; Source: Edison
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Overview

  • The agreement starts in 2028 and runs for up to 15 years, securing roughly 0.7 million tonnes per year of U.S. LNG.
  • Edison will buy on a Free on Board basis and deploy its own LNG carriers to lift, transport, and unload the cargoes.
  • CEO Nicola Monti said Edison expects to scale back two pipeline contracts nearing expiry—about 1 bcm from Algeria and roughly 4.4 bcm partly from Libya—in favor of LNG.
  • Edison’s arbitration against Venture Global over alleged late-2022 delivery failures remains active, with a decision expected by year-end, after Venture Global prevailed in a similar case with Shell last month and denied other buyers’ claims.
  • The deal establishes a second U.S. supply channel for Edison as European buyers expand long-term LNG purchases to gain commercial flexibility, including the option to redirect cargoes when demand softens.