BP and A2A sign 17-year liquefied natural gas supply agreement
A2A Spa on Monday said it has signed a 17-year sale and purchase agreement with London-based oil and gas producer BP PLC for liquefied natural gas.
A2A, a Brescia, Italy-based electricity and gas distributor, said it will purchase up to 10 LNG cargoes, the equivalent of around 1 billion cubic metres of natural gas, per year from 2027 to 2044.
‘The geopolitical instability that has long characterised the global scenario has highlighted the need to consolidate Italy’s energy supply system, which is still highly dependent on foreign sources via pipeline,’ said A2A Chief Executive Officer Renato Mazzoncini.
‘With the signing of this important agreement, we have chosen to diversify the supply mix, benefiting from greater stability and predictability of prices in the medium-to-long term.’
A2A said the supply will meet around 20% of its demand.
The volume will be supplied on both a delivered ex-ship and a free on board basis, A2A noted.
LNG will be received and re-gasified at the offshore LNG Toscana terminal in Livorno, Italy, as well as other terminals in Europe.
Alongside the sale and purchase agreement, BP and A2A said they will work together to ‘enable A2A to optimise shipping capacity for a portion of the volume’.
A2A said it expects lower domestic gas consumption in the final years of the agreement, which means part of the supply may be redirected to other markets.
BP Vice President Jerome Milongo said: ‘We are pleased to conclude this LNG sale and purchase agreement with A2A and appreciate the trust that A2A has placed in us to help them further develop their LNG portfolio. Europe is a significant LNG market and this agreement with A2A expands our existing supply arrangements to the region and will strengthen long-term security of supply in Italy.’
Shares in BP were down 0.6% at 368.05 pence in London on Monday morning. A2A shares were up 0.9% at €2.30 in Milan.
Copyright 2025 Alliance News Ltd. All Rights Reserved.