A subsidiary of Australian gas producer, Po Valley Energy
(ASX:PVE), has extended its a natural gas offtake agreement with Shell Energy Italia.
Po Valley’s subsidiary is Saffron Energy, and Shell Energy Italia is a subsidiary of Shell, the Anglo-Dutch multinational oil and gas company.
The contract has been extended to 1 October 2018, with an option to extend for a further year to 1 October 2019. This contract provides for offtake of gas supply for all of the Shell Group’s Italian gas fields.
Po Valley says that the Italian market is considered a premium pricing market compared with other international markets, with the spot price now trading at around 19.44 Euro cents per cubic metre.
This morning, shares in Po Valley Energy are trading at 3 cents.
