Metlen Energy & Metals (LSE:MTLN) and Shell (LSE:SHEL) have signed a binding five-year liquefied natural gas (LNG) supply agreement covering approximately 0.6 billion cubic metres of natural gas annually, with deliveries scheduled to begin in 2027.
Under the agreement, Shell Global LNG Limited will supply six LNG cargoes each year, primarily sourced from Shell’s United States LNG portfolio.
The gas will be available for delivery to Greece and other European markets through the Vertical Gas Corridor, a regional energy transportation route connecting Greece with Central Europe and Ukraine.
Agreement Covers Six LNG Cargoes Annually
The five-year contract provides for the delivery of six LNG cargoes per year, equivalent to approximately 600 million cubic metres of natural gas annually.
Deliveries are expected to commence in 2027 and continue throughout the agreement’s five-year term.
Shell Global LNG Limited will supply the cargoes primarily from its US LNG portfolio, providing Metlen with an additional source of internationally traded natural gas.
The companies did not disclose the financial value of the agreement or the pricing arrangements governing the contracted volumes.
Vertical Gas Corridor Supports Regional Distribution
The agreement allows LNG supplies to be used in Greece or transported to other European gas markets through the Vertical Gas Corridor.
The corridor provides a route for natural gas deliveries from Greece towards Central Europe and Ukraine, supporting the movement of imported LNG across regional energy networks.
The arrangement gives Metlen flexibility to allocate contracted supplies between the Greek market and other European destinations.
This distribution flexibility is particularly relevant as European energy companies continue to diversify their natural gas procurement and transportation arrangements.
Metlen Expands Long-Term Gas Supply Portfolio
Metlen said the agreement will strengthen its long-term natural gas supply portfolio while broadening its sourcing options.
The company expects the contract to provide additional commercial flexibility across European energy markets, allowing it to respond to demand in different countries.
Securing contracted LNG volumes from Shell’s US portfolio also diversifies Metlen’s supply arrangements beyond individual regional sources.
The agreement represents a further development in Metlen’s energy trading and supply activities, supporting its participation in the European natural gas market.
Shell Strengthens European LNG Supply Activities
For Shell, the agreement establishes a five-year supply commitment with Metlen, using LNG sourced primarily from its United States portfolio.
The contract provides an additional commercial outlet for Shell’s international LNG operations, with supplies intended for Greece and potentially other European markets.
The arrangement also reflects the role of US LNG in serving European natural gas demand through established import and transportation infrastructure.
Neither company provided further details regarding the timing of individual cargo deliveries or the allocation of volumes between destination markets.
More About Metlen Energy & Metals and Shell
Metlen Energy & Metals is a Greece-based international company operating across the energy and metals sectors, with activities including energy supply and trading.
Shell is a global energy company involved in oil and gas production, LNG supply, refining, trading and other energy-related operations.
The five-year agreement connects Shell’s international LNG supply portfolio with Metlen’s European gas activities, with contracted deliveries scheduled to begin in 2027.
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