Shell and MET Group sign contract for 800,000 tonnes of LNG per year from 2026

Shell signs a 10-year contract with MET Group to supply 800,000 tonnes of LNG annually from 2026, strengthening European supply and diversifying its portfolio.

Share:

Shell and MET Group have formalized a strategic agreement for the long-term supply of liquefied natural gas (LNG).
The 10-year contract calls for the delivery of 800,000 tonnes per year from 2026.
The main aim is to secure supplies for MET Group’s European customers and diversify their energy portfolio.
This agreement is a major step forward for MET Group, which is seeking to expand its presence in the Asian market.

A Strategic Agreement

The contract was signed at a price of approximately 119% of Henry Hub (HH) plus a constant of $2.70/MMBtu.
This pricing enables MET Group to strengthen the security of its European energy portfolio while exploring potential new markets in Asia. Shell, as the main supplier, will deliver the LNG from its portfolio in the Gulf of Mexico, USA.
This agreement enables MET Group to meet the growing needs of its customers in Europe, while exploring potential new markets in Asia.
This diversification strategy is crucial for the company to adapt to the changing dynamics of the global energy market.

Price Outlook and Market Analysis

Opinions differ as to the competitiveness of this contract.
One Singapore-based expert considers the price to be relatively low, pointing to a reduced margin and premium risk for US projects.
Conversely, another analyst specializing in long-term contracts deems the price fair, pointing to the absence of an equity component in the deal, which distinguishes it from other recent LNG contracts on an FOB (Free on Board) basis.
In comparison, the contract signed by Shenzhen Energy with Glencore for 500,000 tonnes of LNG per year from 2026-2027 is valued at %-121% HH plus a constant of $4.40-4.50/MMBtu on a DES (Delivered Ex-Ship) basis.
This price reflects an increase in LNG supply costs.

Market Indicators and Forecasts

According to the Henry Hub index future curve as at August 1, the Shell-MET Group contract price would imply an average value of $7.02/MMBtu on an FOB basis for 2027, based on Chicago Mercantile Exchange data.
By way of comparison, the Platts JKM index, which is the benchmark for LNG cargoes delivered in Northeast Asia, was valued at $10.325/MMBtu at the same date.
In addition, the North West Europe Marker index, representing the price of LNG cargoes delivered in North-West Europe, was valued at $11.475/MMBtu for the month of September.
These figures highlight the variations in LNG prices on different world markets, underlining the challenges and opportunities for companies involved in this sector.
This strategic agreement between Shell and MET Group illustrates how major energy companies are adapting their strategies to meet the growing and diversified needs of the global LNG market.
It highlights the complexity of negotiations and pricing in a constantly evolving sector.

Al Shola Gas strengthens its position in Dubai with major liquefied petroleum gas supply and maintenance contracts, exceeding $517,000, covering several large-scale residential and commercial sites.
BW Energy and NAMCOR E&P announce the engagement of the Deepsea Mira rig for drilling the Kharas appraisal well on the Kudu field, offshore Namibia, with a campaign scheduled for the second half of 2025.
The Permian Basin has seen a drop of over 50% in methane emissions intensity over two years, according to S&P Global Commodity Insights, illustrating the impact of advanced technologies and enhanced operational management.
Naftogaz and the State Oil Company of the Republic of Azerbaijan (SOCAR) have formalised an initial contract for natural gas delivery via the Transbalkan corridor, opening new logistical perspectives for Ukraine’s energy supply.
Equinor postpones the restart of its Hammerfest LNG terminal by five days, a key site for European liquefied natural gas supply.
Mozambique aims to strengthen the presence of Russian companies in natural gas exploration and production as the country looks to diversify its partnerships in the natural resources sector.
Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto states Budapest will block any European ban on Russian hydrocarbon imports, stressing the impact on household energy costs.
Spanish group Naturgy reports an unprecedented net profit, driven by rising electricity prices and increased use of its gas-fired power plants since the major Iberian grid outage.
The Hague court has authorised the release of Gazprom’s shares in Wintershall Noordzee, following a judicial decision after several months of legal proceedings involving Ukrainian companies.
SSE plc invests up to €300mn ($326mn) in a new 170MW power plant in County Meath, aiming to ensure energy security and support the growing demand on Ireland's power grid.
The Egyptian government has paid over $1 billion to oil majors to secure natural gas production and restore international investor confidence.
CMA CGM and TotalEnergies announce a strategic partnership with the creation of a joint venture to operate a liquefied natural gas (LNG) bunkering vessel with a capacity of 20,000 m³, based in Rotterdam.
The amount of gas flared globally surged to 151 billion cubic meters, the highest level in nearly twenty years, resulting in losses estimated at 63 billion USD and raising concerns for energy security.
Since early April, Europe has imported nearly 45 billion cubic meters (bcm) of liquefied natural gas (LNG), with storage prospects for winter putting pressure on gas prices.
The Sharjah Electricity, Water and Gas Authority has completed a natural gas network in Al Hamriyah, spanning over 89 kilometres at a total cost of $3.81mn.
The European ban on fuels refined from Russian crude is reshaping import flows, adding pressure to already low inventories and triggering an immediate diesel price rally.
LNG trading volumes in the Asia-Pacific region reached 1.24 million tonnes, driven by summer demand and rising participation, despite a 21% monthly decline linked to geopolitical uncertainty.
Subsea 7 S.A. has announced a major contract signed with Equinor for the engineering and installation of subsea infrastructure at the Fram Sør gas field, located in the North Sea off the coast of Norway.
The Republic of Congo and Eni confirm the expansion of the Congo LNG project and multiply industrial initiatives to strengthen energy supply and strategic sectors.
Italian group Eni signs a twenty-year liquefied natural gas supply contract with US-based Venture Global, covering two mn tonnes per year and marking a first for the company from the United States.