Shell, METLEN Sign LNG Supply and Trading Deal

Why It Matters

The agreement expands LNG availability in Europe, bolstering energy resilience while giving Shell a strategic foothold in Southeast Europe and elevating Greece’s hub status.

Key Takeaways

• Up to 1 bcm LNG annually from 2027‑2031
• Supply via Revithoussa and Alexandroupolis terminals
• Vertical Gas Corridor opens wider European market access
• Strengthens Greece’s role as regional energy hub
• Boosts Shell’s presence in Southeast Europe

Pulse Analysis

The global LNG market is rapidly expanding as Europe seeks to diversify away from pipeline gas and reduce reliance on Russian supplies. Shell, the world’s largest LNG trader and a top U.S. LNG buyer, has been securing long‑term contracts to meet this demand. The new memorandum with Greece’s METLEN adds another strategic layer, giving Shell a foothold in Southeast Europe where gas demand is projected to grow alongside the continent’s decarbonisation agenda. These volumes are expected to support Shell’s ambition to lock in low‑cost supply ahead of the anticipated price volatility in 2025‑2026.

METLEN, a dominant player in Southeast Europe’s gas market, will channel the LNG through Greece’s Revithoussa and Alexandroupolis regasification terminals, both of which have recently upgraded capacities to handle larger cargoes. The agreement also taps the Vertical Gas Corridor, a nascent pipeline network designed to transport gas from the Eastern Mediterranean to Central Europe, thereby extending the reach of the supplied LNG beyond the immediate Greek market. This infrastructure synergy creates a seamless pathway for gas to flow into multiple European hubs, enhancing market liquidity.

The partnership underscores a broader trend of Western energy firms aligning with regional hubs to secure supply chains amid geopolitical uncertainty. For Europe, the additional 0.5‑1 bcm per year contributes to a more resilient gas portfolio, mitigating the risk of shortages during winter peaks. For Shell, the deal diversifies its European exposure and strengthens its trading platform in a market where spot volumes are rising. As the Vertical Gas Corridor matures, the collaboration could evolve into joint investments in storage and downstream services, further cementing Greece’s status as a continental energy gateway.