SUBSCRIBE
PROFILE

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:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99$/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

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.

  • Popular on energynews.pro
EDF raises cost estimate for six new nuclear reactors to €72.8 billion
Primary Hydrogen targets Q1 2026 permit for its Wicheeda North project
Ocean Winds launches its first offshore measurement campaign for the High Sea Wind project
esVolta transfers Black Walnut project tax credit to Computacenter
Solarcentury Africa commissions 19.3 MWp solar plant in Namibia
Canberra imposes mandatory gas reserve to secure domestic supply
The Australian government will require up to 25% of gas extracted on the east coast to be reserved for the domestic market from 2027, in response to supply tensions and soaring prices.
Baker Hughes to supply six LM9000 turbines for Commonwealth LNG terminal
Baker Hughes will deliver six gas refrigeration trains for Commonwealth LNG’s 9.5 mtpa export project in Louisiana, under a contract with Technip Energies.
Shanghai Electric launches 625 MW upgrade to strengthen Iraq’s power grid
Shanghai Electric begins a combined-cycle expansion project across four Iraqi provinces, aiming to boost energy efficiency by 50% without additional fuel consumption.
Zefiro completes $1.5mn gas project in Pennsylvania and prepares $5mn operation in Louisiana
Zefiro Methane, through its subsidiary Plants & Goodwin, completes an energy conversion project in Pennsylvania and plans a new well decommissioning operation in Louisiana, expanding its presence to eight US states.
France: the Council of State bans coalbed methane exploitation in Lorraine
The Council of State has cancelled the authorisation to exploit coalbed methane in Lorraine, citing risks to the region's main aquifer and bringing an end to a legal battle that began over a decade ago.
JERA signs seven-year LNG supply deal with Hokkaido Gas
Japanese power producer JERA will deliver up to 200,000 tonnes of liquefied natural gas annually to Hokkaido Gas starting in 2027 under a newly signed long-term sale agreement.
Israel seals a €30 billion gas contract with Egypt
An agreement announced on December 17, 2025 provides for twenty years of deliveries through 2040. The package amounts to 112 billion new Israeli shekels (Israeli shekels) (NIS), with flows intended to support Egyptian gas supply and Israeli public revenues.
ADNOC raises up to $11bn to finance the Hail and Ghasha offshore gas project
Abu Dhabi’s national oil company has secured a landmark structured financing to accelerate the development of the Hail and Ghasha gas project, while maintaining strategic control over its infrastructure.
Sawgrass LNG marks eight years of liquefied natural gas deliveries to The Bahamas
U.S.-based Sawgrass LNG & Power celebrates eight consecutive years of LNG exports to The Bahamas, reinforcing its position in regional energy trade.
Kinder Morgan restores EPNG capacity at Lordsburg earlier than expected
Kinder Morgan restored the EPNG pipeline capacity at Lordsburg on December 13, ending a constraint that had driven Waha prices negative. The move highlights the Permian’s fragile balance, operating near the limits of its gas evacuation infrastructure.
ENGIE commissions 875 MW of flexible capacity to support Belgian grid
ENGIE activates key projects in Belgium, including an 875 MW gas-fired plant in Flémalle and a battery storage system in Vilvoorde, to strengthen electricity supply security and grid flexibility.
Hungary signs five-year gas deal with Chevron despite ties to Moscow
Hungary has signed a contract with US company Chevron to import 400mn m³ of LNG per year, while maintaining a structural dependence on Russian gas through a long-term agreement with Gazprom.
Subsea7 secures $300mn contract for Gorgon Stage 3 project in Australia
Chevron Australia awards Subsea7 a major contract for subsea installation on the Gorgon Stage 3 project, with offshore operations scheduled for 2028 at 1,350 metres depth.
Ovintiv signs 12-year deal for access to Cedar LNG liquefaction capacity
Ovintiv has entered into an agreement with Pembina Pipeline Corporation to secure 0.5 million tonnes per annum of LNG liquefaction capacity over 12 years, strengthening its export outlook to Asian markets.
TotalEnergies sells 9.998% stake in Malaysia’s SK408 block to PTTEP
TotalEnergies has completed the sale of a minority stake in a Malaysian offshore gas block to PTTEP, while retaining its operator role and a majority share.
Brussels eases methane stance to secure gas imports
The European Union will apply its methane emissions rules more flexibly to secure liquefied natural gas supplies from 2027.
Caracas ends gas trade with Trinidad and Tobago after tanker seizure
Venezuela has ended all energy cooperation with Trinidad and Tobago after the seizure of an oil tanker carrying crude by the United States, accusing the archipelago of participating in the military operation in the Caribbean.
National Fuel raises $350mn through private placement to fund strategic acquisition
National Fuel has secured $350mn in a private placement of common stock with accredited investors to support the acquisition of CenterPoint’s regulated gas business in Ohio.
François Michel appointed CEO of GTT after record year
GTT appoints François Michel as CEO starting January 5, separating governance roles after strong revenue and profit growth in 2024.
Washington demands methane exemption until 2035 to protect its LNG exports
The United States is requesting a derogation from EU methane rules, citing the Union’s energy security needs and the technical limits of its liquefied natural gas export model.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

START - 99$/year

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.