Swiss-based MET Group has entered into a long-term FOB (Free-On-Board) LNG purchase agreement, by signing a 10-year agreement with Shell. MET’s primary objective is to supply its European customers with US LNG.
Through the long-term contract with Shell, MET Group is able to further diversify its LNG supply portfolio, helping to ensure security of supply for its customers across Europe, ranging from its own gas-fired power plant demand to energy-intensive industrial companies and SMEs and households. Alongside bolstering security of supply for MET’s European portfolio, this flexible LNG supply enables its diversification ambitions, allowing the company to extend its geographical scope to new regions such as Asia.
MET has one of the most diversified LNG import structures from a geographical perspective in Europe. The integrated energy company has long-term regasification capacity bookings in Germany, Croatia and Spain, and has imported into 8 different countries in recent years – including around the Mediterranean (Greece, Italy, Croatia, Spain), Northwest Europe (UK, Belgium, Germany) and the Nordic region (Finland). In 2023, MET delivered more than 30 cargoes of LNG to Europe.
György Vargha, CEO of MET International AG said: “The long-term FOB source fits perfectly into MET’s LNG strategy. We have a diverse European downstream position building on a regasification capacity portfolio around Europe, optimizing our downstream requirements with flexible supply sources. As a natural next step, we have entered a long-term FOB position enabling diversification to the global LNG markets.”
Tom Summers, Senior Vice President of Shell LNG Marketing and Trading, said: “LNG has a crucial role to play in delivering energy security and agreements such as this are instrumental in achieving that. We look forward to working with MET Group to fulfil their gas requirements and help to meet the needs of its diverse customer base.”
MET Group
MET Group is an integrated European energy company, headquartered in Switzerland, with activities and assets in natural gas and power markets. MET is present in 15 countries through subsidiaries, 30 national gas markets, and 39 international trading hubs. MET has extensive experience in operating green (renewable) and flexible (conventional) energy assets, thus providing the widest possible support to the energy transition. In 2023, MET Group’s consolidated sales revenue amounted to EUR 24.5 billion, with a total traded volume of natural gas amounting to 88 BCM and total traded electricity of 68 TWh.