Snam buys regasification vessel as Italy diversifies energy supplies

By Valentina Za and Maria Pia Quaglia

MILAN -Italy’s state-controlled Snam has agreed to purchase a floating regasification terminal with capability of 5 billion cubic metres a 12 months from Golar LNG, as Rome works to chop its reliance on Russian gasoline.

After Germany, Italy is the European nation most depending on Russian gasoline, which accounts for 40% of its whole imports. The federal government has been scrambling to broaden its vitality provides in gentle of the Ukraine warfare and Western sanctions towards Russia.

Snam mentioned it had agreed to purchase the Golar Tundra floating storage and regasification unit (FSRU) for $350 million and was engaged on a second FSRU acquisition that it anticipated to finalise by the top of June, having entered unique talks.

“Snam accomplished the transaction rapidly and successfully in a extremely aggressive market as a result of shortage of provide,” CEO Stefano Venier mentioned.

“With the acquisition of the Golar Tundra, Snam is taking a decisive step to reinforce the safety and diversification of Italy’s vitality provides.”

In-built 2015, the Golar Tundra may function a liquefied pure gasoline (LNG) service with a storage capability of 170,000 cubic metres.

To benefit from its regasification capability, Snam will find the vessel in a port in central-northern Italy, near the areas with biggest gasoline consumption.

The Golar Tundra is anticipated to begin working as an FSRU in the course of the spring of 2023 and would require the development of infrastructure connecting the terminal to the prevailing gasoline transportation community.

Golar will lease Golar Tundra from Snam as an LNG service for a restricted time frame after closing, and assist Snam in laying the groundwork to then set up the vessel within the chosen port.

The acquisition will “contribute to about 6.5% of home wants, thus bringing the nation’s regasification capability to over 25% of the demand,” Venier mentioned.

Italy has three working LNG terminals.

In mid-Might Snam signed one other contract with Golar LNG for a vessel to be transformed into an FSRU that shall be put in in a port in Sardinia.

Mediobanca suggested Snam on the Golar Tundra deal.