- Greater supply security and increased medium-to long-term price stability and visibility for A2A

A2A and bp have signed a sale and purchase agreement (SPA) for liquefied natural gas (LNG), under which A2A will purchase up to 10 LNG cargoes (equivalent to approximately 1 billion cubic meters of natural gas) per year from 2027 to 2044.

"The geopolitical instability that has long characterized the global scenario has highlighted the need to consolidate Italy's energy supply system, which is still highly dependent on foreign sources via pipeline," - comments Renato Mazzoncini, CEO of A2A - "In the coming years, gas will continue to play a significant role in the security of the national system, balancing the intermittency of renewables through thermoelectric production, which is increasingly efficient thanks to next-generation combined cycle plants with efficiencies above 60%. 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. As the second largest operator in Italy, we aim to meet the energy demand of end customers and contribute to the security and stability of the country, businesses, and citizens."

Jerome Milongo, VP global LNG trading & origination at bp, said “At bp, we see LNG as an essential part of the energy transition. 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.”

The volume will be supplied to A2A on both a delivered ex-ship (DES) and a free on board (FOB) basis. Under the terms of the agreement, bp will provide A2A with LNG from its diverse, global portfolio. LNG will be received and re-gasified at the OLT Offshore LNG Toscana terminal in Livorno, Italy, where A2A has secured multi-year regasification capacity through an auction, as well as other terminals in Europe. The contracted LNG supply will meet around 20% of A2A Group’s demand.

For A2A, the agreement is aligned with the decarbonization targets outlined in A2A’s Industrial Plan for 2035, which aims for a 65% reduction in Scope 1 and 2 emissions factor through the increase in renewable energy capacity, set to reach 5.7 GW, and the electrification of final energy consumption. Gas deliveries will begin in the last quarter of 2027, with a reduction in volumes starting from 2042.
Alongside the LNG SPA, the two companies will work together to enable A2A to optimize shipping capacity for a portion of the volume. During the final years of the agreement, A2A expects lower domestic gas consumption, meaning part of the supply may be redirected to other markets.

About A2A

Listed on the Italian Stock Exchange, with about 15,000 employees, A2A is the leading player in Italy in the circular economy and district heating, and the second national energy operator for installed capacity and distributed electricity. The Group manages the generation, sale, and distribution of energy, the sale and distribution of gas, district heating, waste cycle, electric mobility, and smart services for cities, public lighting, and integrated water service. A2A's strategy is based on the two pillars of the circular economy and energy transition, to which an investment plan of 22 billion euros by 2035 is dedicated, combining sustainable value generation, decarbonization, innovation, and contribution to the country's energy autonomy.

About bp

bp (NYSE: BP, LSE: BP.L) is one of the world's largest oil and gas companies, serving millions of customers every day in more than 80 countries, and employing nearly 85,000 people. BP's business segments are oil and gas exploration & production, and refining & marketing. In alternative energies, BP has low- and no-carbon wind and biofuels businesses. Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbons basins and strong market positions in key economies.