Shell buys Morgan Stanley’s Europe gas and power portfolio

Shell Plc agreed to buy Morgan Stanley's European natural gas and power trading portfolio, adding to a business that is already among the world's biggest.

Shell Energy Europe Ltd will acquire Morgan Stanley’s book of physical and financial gas and power contracts, Shell said in an emailed statement Friday.

Shell, the second-biggest oil company by revenue, didn’t disclose the value of the transaction. Trading of oil and gas helped Shell beat analysts’ earnings forecasts in the quarter ended March 31st as it profited from storing crude to sell later at a higher price.

Shell’s trading business also allows it to sell more natural gas than it produces, helping the company take advantage of differences in prices around the world.

"This provides innovative solutions for customers to deliver a reliable source of energy, and also to manage the price risk inherent in global commodity markets," Slavko Preocanin, president of Shell Energy Europe, said in the statement.

Shell, BP Plc and Total SA are the world's biggest energy traders, handling enough crude oil and refined products every day to meet the consumption of Japan, India, Germany, France, Italy, Spain and the Netherlands.

Bloomberg