METLEN Energy & Metals (LSE: MTLN), the Greece-headquartered metals and energy group, has signed a binding five-year LNG supply deal with Shell Global LNG Limited. Its shares were up about 0.4% in the first minutes of trading today.
The stock was quoted at 48.14 at 8:07am London time, up 0.2, or 0.42%, from Friday’s close of 47.94, on just 1,725 shares traded. That is 12.5% below the 52-week high of 55, reached intraday on the 6th of August.
The release, issued through Reach at 7:15am, 45 minutes before the open, says the agreement builds on the memorandum of understanding, a non-binding preliminary pact, signed in February. Shell Global LNG, Shell’s LNG supply and trading arm, will supply six cargoes a year over five years from 2027, about 0.6 billion cubic metres a year.
The cargoes are primarily sourced from Shell’s US LNG portfolio, for supply to Greece or other European gas markets, with access to European markets via the Vertical Gas Corridor. The release gives no further detail on that route. METLEN says the deal reinforces its strategy of long-term supply, diversification and commercial flexibility, and supports Greece’s evolution into a key regional energy hub.
Unlike the memorandum, a binding agreement is legally enforceable. What the release leaves out is the contract value, price or pricing formula, financial effect, terminal or loading point, and the start date within 2027.
“Combining Shell’s global LNG capabilities with METLEN’s established regional presence strengthens our supply portfolio and gives us greater flexibility to serve Greece and other European markets.”
Kanellopoulos, Chief Executive Director International Energy Supply & Trading, METLEN
Summers, Executive Vice President for Shell LNG Marketing and Trading, said LNG “plays a vital role in providing flexible and reliable energy for people and businesses across Greece and other European countries”.
No source ties the early share move to the deal, and timing alone is not evidence. The price sits close to its 50-day average of 48.19, after a 2.13% gain over the five sessions to Friday and a 2.16% fall over the month.
With no value or earnings effect disclosed, the contract alone offers little basis for a re-rating call. The market will have to wait for any detail on pricing or timing.