LNG

Italian floating LNG terminal company, OLT Offshore LNG Toscana controlled by Italian natural gas grid and LNG terminals operator Societa Nazionale Metanodotti (SNAM), said the “FSRU Toscana” has completed the first phase of maintenance at a shipyard in Italy’s northwest port of Genoa.

Italian floating LNG terminal company, OLT Offshore LNG Toscana controlled by Italian natural gas grid and LNG terminals operator Societa Nazionale Metanodotti (SNAM), said the “FSRU Toscana” has been towed to a shipyard in Genoa for the first phase of a maintenance programme.

Italian floating LNG terminal company, OLT Offshore LNG Toscana controlled by Italian natural gas grid and LNG terminals operator Societa Nazionale Metanodotti (SNAM), said the “FSRU Toscana” vessel would be undergoing long-term maintenance for a longer period than initially expected.

Italian floating LNG terminal company, OLT Offshore LNG Toscana controlled by Italian natural gas grid and LNG terminals operator Societa Nazionale Metanodotti (SNAM), said the “FSRU Toscana” vessel would be undergoing long-term maintenance at a shipyard and would be offline for six months.

May 31 (LNGJ) - OLT Offshore LNG Toscana, the company that owns the floating LNG import terminal off the port of Livorno, has received authorization to increase its annual regasification capacity from the current 3.75 billion cubic metres to about 5 Bcm per year.

   “Thanks to the decree issued on May 26 OLT will be able to receive up to 122 small-scale LNG carriers per year to carry out the small-scale LNG supply service,” said the company. Giovanni Giorgi, Chief Executive of OLT Offshore, said a new chapter was beginning almost 10 almost after the start of operations at the terminal “Thanks to the increase in the authorized regasification capacity and in the number of berths for small-scale LNG carriers, and as part of the new small-scale LNG service, the ‘FSRU Toscana’ will be able to increase its contribution to diversification and security of supply,” added Giorgi.

SNAM, the Italian natural gas grid and LNG terminals operator, said the most recent projections for the evolution of gas demand in Italy this year point to a decline by year-end compared with 2021 because of higher prices, milder weather and more LNG cargoes brought in to help boost storage.

Natural gas demand in Italy fell by 3.2 percent in the first nine months of 2022 to 51.66 billion cubic metres from 53.40 Bcm in the same period of 2021.

SNAM said natural gas moving through the storage system in Italy in the first nine months rose by 8.3 percent to 15.71 Bcm versus last year’s 14.51 Bcm.

“In the first nine months of 2022, the LNG terminal of Panigaglia (La Spezia, near Genoa) regasified 1.47 Bcm of LNG and increase volumes by 34.9 percent as 38 LNG carriers were unloaded compared with 25 carriers unloaded in the same period of 2021,” said SNAM.  

“The warmer weather, the effects of the increase in energy prices in the industrial sector as well as the measures envisaged in the ‘National Natural Gas Consumption Containment’ plan have cut demand and improved supplies,” said SNAM.

“Despite the reduction in imported Russian gas flows to Italy experienced in particular in the third quarter of 2022, the overall performance is not expected to be impacted significantly this year,” added the company.

“The current European gas market is affected by uncertainty on the supply side. This has engendered substantial volatility at the European hubs in past months with sharp price differentials in markets with greater regasification capacity,” explained SNAM.

Price forecasts

“Although prices are currently subsiding after the records posted in August because of the high level of gas in storage facilities and the European demand containment plan, forward prices for the coming winter months remain strong and above €100 per megawatt hour pending the arrival of colder weather,” it stated.

The numbers came in SNAM’s nine-month earnings report in which revenues rose by 10.3 percent to €2.40 billion ($2.41Bln) compared with €2.17Bln the same period of 2021.

The company's nine-month net profits declined by 0.6 percent to €932 million from €938M in the prior-year period.

SNAM, whose name comes from Societa Nazionale Metanodotti (National Pipeline Company), operates the onshore Panigaglia LNG facility as well as having a controlling stake in the LNG facility, the “FSRU Toscana”, the floating storage and regasification unit (FSRU) moored off the Italian coast between the cities of Livorno and Pisa.

SNAM has also agreed to purchase two stakes held by Italian oil and gas company Eni in natural gas pipelines from Algeria, though the deals have not yet gone through.

“With regard to the agreement announced on November 27th, 2021 concerning the sale to SNAM of 49.9 percent of the investments held by Eni in the companies that manage the two groups of international gas pipelines connecting Algeria to Italy, the closing of the transaction has been postponed to the end of the year, pending the completion of the authorisation process,” SNAM explained.

FSRU deployments

SNAM is additionally bringing two more FSRU into the Mediterranean to increase the quantities of LNG available to Italy, including the “BW Singapore” being purchased from BW Group of Singapore.

SNAM agreed a similar deal at the start of June 2022 with shipping group Golar LNG, acquiring the FSRU “Golar Tundra” for $350 million to help boost imports.

“With receipt of authorisation to begin operation of our regasification vessels, we take the first step in the remodelling of our national energy security, which will soon have to be accompanied by the expansion of transport and storage infrastructure and an acceleration of initiatives for the transition, in which SNAM expects to play a leading role,” declared SNAM Chief Executive Stefano Venier in the earnings report.

“Performance in the first nine months of 2022 confirms the soundness of the Group’s action even in an environment clouded by uncertainty,” he added.

“The strong performance of our entire Italian business despite the reduction in regulated rates in the gas segment, the contribution of our foreign associates and the new businesses connected with the energy transition have contributed to the stability of our profits,” stated the CEO.

Italy has approved two projects for floating LNG import terminals off the coast of Ravenna in the eastern Adriatic Sea and at the West Coast port of Piombino, opposite the island of Elba.

Italy has said that as part of its energy security strategy two floating storage and regasification units (FSRUs) will be added to the three existing LNG import facilities.

The two new LNG terminals, both to be operated by Italy's state-controlled gas grid operator SNAM, will have a capacity of 5 billion cubic metres, covering around 15 percent of national annual gas consumption.

The FSRUs will be Italy’s fourth and fifth LNG import terminals after the onshore facility at Panigaglia near Genoa, another FSRU owned by OLT Offshore Toscana off the port of Livorno and the Adriatic LNG facility, an offshore gravity-based structure on the east coast.

The FSRU destined for Ravenna, the 170,000 cubic metres capacity “BW Singapore”, was purchased by SNAM and is currently bound by a charter agreement with a third party after which it will be deployed by the end of 2024.

SNAM Chief Executive Stefano Venier said that preparatory works would last two years with the Ravenna terminal expected to start operations in the fourth quarter of 2024.

“We have chosen Ravenna and Piombino both for the technical characteristics they offer us, but also because they're close to consumers,” stated Venier.

Italy is planning on the Piombino FSRU being operational by the end of March 2023.

The Piombino terminal will be in the form of the deployment of the 154,950 cubic metres capacity FSRU vessel “Golar Tundra”.

Ideal location

The port of Piombina was chosen because there was no other place in that region of Italy where there was a substantially unused jetty of 300 metres in length.

In addition the FSRU will be only 8.8 kilometres (5.5 miles) from the main SNAM gas network connections.

SNAM also officially ended its gas injection campaign at the end of October with the level of gas stocks managed by subsidiary Stogit reaching 95.2 percent for a total of 11.2 Bcm of natural gas in addition to the 4.5 Bcm held as strategic reserves.

The network operator added that the national energy system would also have access to an additional 1.1 Bcm held in the storage facilities of other operators.

“The supply of gas from storage will take place in the coming months on the basis of the guidelines soon to be issued by the Ministry of the Environment and Energy Security using transparent auction mechanisms,” added SNAM.

Oct 25 (LNGJ) - OLT Offshore LNG Toscana, the company controlled by Italian grid operator SNAM and Igneo Infrastructure Partners, has launched a consultation on proposed amendments to the regasification capacity rules concerning the floating storage and regasification unit, the “FSRU Toscana”, deployed off the Mediterranean port of Livorno.

   “From October 24, it is possible to consult the proposed amendment of the regasification code concerning the update of the procedures required to unload volumes of LNG exceeding 155,000 cubic metres and the duration of the financial guarantees required for continuous capacity,” said OLT Offshore. Other issues covered include the possibility of having quantities of gas involved in transactions traceable to biomethane production or as bio-LNG.

The Italian Port of Piombino in northwest Italy, located opposite the island of Elba, has been chosen as the preferred site amid local opposition for one of two floating storage and regasification units purchased by Italy’s grid operator SNAM to improve energy security.

July 6 (LNGJ) - OLT Offshore LNG Toscana, the owner of the floating storage and regasification unit “FSRU Toscana” deployed offshore Livorno, has named Elio Ruggeri as Chairman and confirmed Giovanni Giorgi in the role of sole Chief Executive. The company also thanked outgoing CEO Maurizio Zangrandi, who had shared the role of Co-CEO with Giorgi.

   “I am honoured to assume the position of Chairman of OLT, an infrastructure that more than ever represents a reference point for the country in terms of security and diversification of energy supplies,” said Chairman Ruggeri. CEO Giorgi thanked Zangrandi for their positive and constructive collaboration. “I extend my sincere thanks to the company for the trust they have granted me again,” added Giorgi.