Shell and Greek energy company METLEN have signed a memorandum of understanding to collaborate on the supply and trading of liquefied natural gas, marking a significant expansion of LNG cooperation between the two firms. The agreement was formalised in Washington, DC and establishes a framework for joint activities spanning a five-year period from 2027 to 2031.
According to the terms of the MoU, the partnership will cover the annual supply and trading of between 500 million and one billion cubic metres of LNG during the agreement period. Deliveries are scheduled to arrive at Greece’s two key regasification facilities located at Revithoussa and Alexandroupolis.
Strategic LNG Supply Routes Through Greece
The agreement positions Greece as a central hub for natural gas distribution into south-east Europe and beyond. The Revithoussa terminal, situated on an islet west of Athens, currently serves as Greece’s primary facility for receiving, storing, and regasifying LNG before feeding it into the national transmission system.
Meanwhile, the Alexandroupolis floating storage and regasification unit became operational in 2024 and adds substantial capacity to Greece’s LNG infrastructure. The facility can regasify up to 5.5 billion cubic metres of natural gas per year, according to project specifications.
Vertical Gas Corridor Integration
Beyond deliveries to Greek facilities, the partnership includes plans to utilise the Vertical Gas Corridor initiative to reach additional European markets. This corridor is designed to increase connectivity between Greece and countries including Bulgaria, Hungary, Moldova, Romania, Slovakia and Ukraine using existing infrastructure such as the Trans-Balkan Pipeline.
The corridor offers an alternative supply route into Europe and connects to substantial underground storage facilities in Ukraine. This infrastructure network aims to enhance energy security for the region by diversifying supply pathways.
High-Level Support for Energy Partnership
Representatives signing the MoU included METLEN international energy supply and trading chief executive director Panagiotis Kanellopoulos and Shell LNG executive vice-president Tom Summers. The signing ceremony took place in the presence of senior government officials from both Greece and the United States.
Attendees included Greece’s Minister of Environment and Energy Stavros N Papastavrou, US Secretary of Energy Chris Wright, and US Secretary of the Interior Doug Burgum. METLEN executive chairman Evangelos Mytilineos stated the agreement marks an important step in strengthening the company’s role in European natural gas markets.
Growing Global LNG Demand
Shell continues to be a major purchaser of US LNG with significant shipping capacity and an extensive market portfolio. According to Shell’s LNG outlook released in late 2025, global demand for the commodity could rise by approximately 60 percent by 2040, driven by economic growth in Asia and emissions reduction efforts.
However, recent market dynamics show constrained growth in the near term. In 2024, worldwide LNG trade increased by only two million tonnes, the smallest annual rise in a decade, reaching 407 million tonnes amid limited new supply development.
Looking ahead, more than 170 million tonnes of new LNG supply capacity may become available globally by 2030, though project start-up timelines remain uncertain. The Shell-METLEN partnership is expected to commence deliveries in 2027, subject to final commercial agreements and regulatory approvals in the coming months.
