Italy’s Snam Buys Floating Regasification Unit for $400 Million
(Reuters) — Italy's Snam has signed a $400-million deal with BW LNG to buy a floating storage and regasification unit (FSRU), the gas grid operator said on Wednesday, as Rome rushes to find alternative supplies to Russian gas.
Last year Moscow supplied 40% of Italy's imports of gas, or 29 billion cubic meters. But since mid-June, Russia has been supplying less gas than requested by Rome, increasing pressure on the government to diversify its energy sources.
State-controlled Snam, which last month acquired a first regasification vessel from Golar LNG, said it expected the unit, called BW Singapore, to become operational in the third quarter of 2024, once a contract with a third party currently using the unit expires and the permitting process is completed.
"With this operation, we are providing Italy with its second new floating regasification unit thus making a decisive contribution to the country's energy security and diversification," Snam CEO Stefano Venier said in a statement.
The two FSRUs which have recently been acquired by Snam will contribute 13% of Italy's gas demand and bring the country's regasification capacity to over 30% of demand, Venier added.
The Italian group plans to install the BW Singapore in the upper Adriatic Sea, close to the town of Ravenna to intercept potential new LNG flows from North Africa and the Eastern Mediterranean, the Italian group said.
The acquisition will be financed by Snam from its own resources for a total of around $400 million, which will be paid in two tranches.
In the coming months, Snam will also begin activities to contract LNG regasification capacity which will gradually become available from the start-up of BW Singapore in Italy.
Related News
Related News
- Repsol Ditches Plans to Develop LNG Terminal on Canada’s East Coast
- Kazakh Oil Decouples from Russian Crude But Risk Weighs on Price
- Pipeline Operator TC Energy Says Stress, Weld Fault Caused Keystone Oil Spill
- US to Sell 26 Million Barrels of Oil Reserves As Mandated by Congress
- Ukraine to Jointly Buy Gas with European Union Countries
- Company Cancels Byhalia Connection Pipeline Project
- US Intelligence Suggests Pro-Ukrainian Group Sabotaged Nord Stream Pipelines -NYT
- EIA: US Natural Gas Output to Hit Record High in 2023, Demand to Fall
- US Regulator Orders Lower Pressure on Keystone Pipeline System After Spill
- US Carbon Pipeline Faces Setback as Residents Refuse to Cede Land Rights
Comments