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Under the deal with Shell International Trading Middle East, Edison will receive around 0.7 mtpa of LNG from the US, starting in 2028 and continuing for up to 15 years, according to a statement by Edison.
Edison will purchase the gas on a FOB (free on board) basis, using its own fleet of LNG carriers,
taking care of the collection of the LNG supplies at source, their transport, and unloading at the destination.
“The opening of this second channel from the United States is another piece in our industrial strategy, aimed at increasing the country’s security of supply and strengthening the long-term competitiveness and flexibility of our long-term portfolio”, said Fabio Dubini, executive VP of gas and power portfolio management and optimisation at Edison.
“Our goal is to continue diversifying, as we have always done, by opening up new routes. This has enabled us to contribute to national energy security, providing rapid responses in recent times of crisis, thanks to the solid relationships we have built with sellers over the years,” Dubini said.
Dubini added that Edison’s goal is to maintain a share of at least 20 percent of the Italian market by 2030, “continuing to build a portfolio capable of promptly adapting supply to the demands of international markets and customers, while reducing the associated geopolitical risks.”
Edison’s LNG business
In May, Edison delivered the first Calcasieu Pass LNG cargo under its long-term deal with Venture Global LNG to Snam’s FSRU-based terminal in the Italian port of Piombino.
The 2022-built 174,000-cbm, Elisa Aquila, owned by France LNG Shipping and chartered by Edison, delivered the maiden shipment from Louisiana to Snam’s 170,000-cbm FSRU, Italis LNG, in Piombino.
Today, Edison imports approximately 14 billion cubic meters of natural gas per year into Italy, with import contracts from Qatar (6.4 billion cubic meters), Libya (4.4 billion cubic meters), Algeria (1 billion cubic meters), Azerbaijan (1 billion cubic meters), and the US (1.4 billion cubic meters), meeting 23 percent of domestic demand.