Italy ramps up LNG supplies

Thursday, 27 October 2022
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Italian state-owned gas network operator Snam has reportedly won the right to install Italy’s latest LNG terminal. 

The decision by a state-appointed commissioner cleared the way for the installation of the FSRU ’Golar Tundra’ that Snam bought earlier this year, according to a statement seen by newswires. The FSRU is due to come online in the spring of 2023.

This project had faced strong opposition from the people of Piombino, where the vessel is due to be deployed.

However, the authorisation included compensation for the local community, the Tuscan Government reportedly said, including finance for berths dedicated to fishing and tourism, a 50% reduction in energy bills in the area where the vessel will be moored and hiring incentives given to local companies.

The terminal will be crucial for Italy’s future energy security following what promises to be a tight winter season. Imports of Russian gas are at historic lows with little prospect for a return to past levels, local sources said.

Snam expected the FSRU to contribute about 6.5% of Italy’s domestic requirements and play a major role in processing LNG deliveries next year to refill gas storage tanks.

Italy has been one of the most successful countries in sourcing alternative supplies following the Russian invasion of Ukraine, sources claimed.

For example, in recent months, gas deals have been signed between energy major Eni and African and Middle Eastern suppliers.

In another move to boost supplies, Eni has started to provide additional LNG to the Panigaglia (La Spezia) regasification terminal.

The first cargo was delivered to a Spanish terminal on 9th October from Angola, where it was transhipped onto smaller ships for onward shipment to the Panigaglia terminal.

Further LNG deliveries from Egypt and Algeria were also expected this month.

Additional LNG volumes being shipped to Italy, thanks to the availability of regasification terminals currently under development, will exceed 2 bill cu m between 2022 and 2023, Eni said.

This total will progressively reach 7 bill cu m between 2023 and 2024, and will exceed 9 bill cu m between 2024-2025, in addition to the supplies being shipped via a pipeline. 

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