Edison plans to increase LNG imports for greater flexibility

Group 1 - Edison, an Italy-based gas company, is enhancing its flexibility by substituting some gas volumes from pipeline contracts with liquefied natural gas (LNG) [1] - The company has entered into a 15-year deal with Shell to procure approximately 700,000 tonnes per annum (tpa) of US LNG starting in 2028 [1][3] - European operators, including Edison, are increasingly turning to LNG to navigate uncertain consumption patterns and redirect cargoes to different markets when demand decreases [2] Group 2 - Edison plans to reduce overall volumes from two expiring pipeline contracts, one for around one billion cubic metres (bcm) per annum from Algeria and another for roughly 4.4 bcm from Libya, replacing them with more LNG [2][3] - The Shell contract is a key component of Edison's strategy to supply either the Italian or European market or to channel volumes to emerging economies [3] - Edison is currently engaged in arbitration with Venture Global LNG over alleged failures to initiate LNG deliveries in late 2022, with a decision expected by the end of 2025 [4] Group 3 - The outcome of a similar dispute between Venture Global and Shell, which Venture Global won, was unexpected for Edison [4][5] - Venture Global faces additional claims from other companies, including BP and Galp, regarding its fulfillment of contracted LNG deliveries [5]