LNG

Italian gas grid and LNG terminals operator Societa Nazionale Metanodotti (SNAM), is making progress in acquiring more natural storage in Italy to underpin the build-out of floating LNG import terminals.

Italian gas grid and LNG terminals operator Societa Nazionale Metanodotti (SNAM) has given a detailed update on the plans to deploy a floating storage and regasification unit (FSRU) at the port of Ravenna in the North of the Adriatic coast.

ExxonMobil Corp., the largest US oil company and leading LNG producer and a partner of Qatar in many global projects, will have its first-quarter 2024 earnings impacted by price shifts while also completing the sale of its stake in the Adriatic LNG import terminal offshore Italy and pursuing the huge takeover of Pioneer Natural Resources in the US.

ExxonMobil estimated that large decreases in oil, gas and fuel prices would deliver a first-quarter operating profit of between $6.65 billion and $11.6Bln for the first three months of the year compared with $7.63Bln in the fourth quarter of 2023.

ExxonMobil filed its first-quarter earnings indicator with the US Securities and Exchange Commission.

The ExxonMobil earnings total would be well below the prior-year first quarter when natural gas prices were much higher.

Weaker prices

Overall weaker oil and gas prices alone were expected to reduce ExxonMobil’s profits by about $600 million compared with the fourth quarter of 2023.

The company also said fuel derivatives adversely affected gains in gasoline and diesel margins, costing it about $1.1Bln compared with the fourth quarter.

Refining maintenance costs also increased during the fourth-quarter and the first quarter of the 2024.

“To give perspective regarding market and planned factors affecting 1Q 2024 results, we are providing the summary of items management believes will impact 1Q 2024 results relative to 4Q 2023 results,” said the company.

“These factors are generally limited to significant planned activities, market dynamics and seasonal demand patterns,” the filing explained.

“This is only intended to provide information regarding current estimates of these factors,” said the filing.

“It is not comprehensive of all changes between 4Q 2023 and 1Q 2024 results and is not an estimate of 1Q 2024 earnings for the Corporation,” ExxonMobil stated.

Adriatic LNG sale

Dutch energy storage group VTTI has also acquired the 70 percent stake previously held by ExxonMobil in Italy's biggest LNG terminal, the gravity-based structure facility Adriatic LNG, and the balance of 30 percent is now owned by Italian gas grid and terminals operator SNAM.

ExxonMobil had stated in March 2023 that it was considering selling its stake of just over 70 percent in Adriatic LNG as a non-core asset.

The Adriatic terminal is located 15 kilometres (9.3 miles) off the Veneto coastline of Italy and has been on line since 2009.

It includes two LNG storage tanks, each with a capacity of 125,000 cubic metres.

The operating company is called Terminale GNL Adriatico. ExxonMobil had held its majority stake while a QatarEnergy unit, Qatar Terminal Company, owned 22 percent and SNAM had held 7.3 percent.

ExxonMobil is also pursuing the all-stock deal to acquire Texas-based Pioneer Natural Resources for $59.5Bln.

The combination gives ExxonMobil a stronger position in the Permian Basin in Western Texas and New Mexico.

ExxonMobil is expected to report first-quarter earnings on April 26.

Adriatic LNG, the import terminal offshore northeast Italy, reported a record year in terms of shipments and regasified volumes delivered into the Italian national grid.

The operating company, Terminale GNL Adriatico, is a gravity-based terminal that came on line in 2009 and 70-percent owned by ExxonMobil Corp.

The other minority shareholders include a subsidiary of QatarEnergy and the Italian grid operator and import terminals owner, SNAM.

“The regasification terminal located off the Veneto coast sent 8.5 billion cubic metres of natural gas into the national pipeline network, an increase of 7 percent from the previous year,,” said Adriatic LNG.

Steady cargo flow

A total of 75 LNG carriers called at the terminal last year, mainly from Qatar and the United States but also from other geographical areas, including, for the first time, Mozambique.

The volumes provided over 14 percent of natural gas consumption and confirmed itself as the third main entry source for Italian gas imports.

“The terminal therefore broke its previous best annual record, scored in 2022, when it sent 7.9 Bcm of gas into the national grid,” added the company.

Adriatic LNG noted that the results confirmed the increasing relevance of LNG in the Italian energy mix.

In 2023, total LNG imports to Italy amounted to 16.6 Bcm, a 16.8 percent increase compared with 2022.

The cargoes met 27 percent of the national natural gas needs of 61.5 Bcm.

Strategic infrastructure

For all of 2023 over 50 percent of Italian LNG imports were shipped through Adriatic LNG.

“Our terminal confirmed to be a strategic energy infrastructure for Italy and Europe,” said Alfredo Balena, Director of External Relations at Adriatic LNG.

“We can say that the 8.5 Bcm of natural gas injected by Adriatic LNG into the national grid represent an energy quantity equivalent to approximately 93 million megawatt-hours, equivalent to the total energy consumed the Veneto and Lombardy regions for a year,” stated Balena.

In total, from 2009 to 2023, 1,058 LNG carriers arrived at the regasification terminal for a total of 92 Bcm of gas sent into the national gas grid.

“The security of energy supplies in Europe and Italy is and will increasingly be based on LNG,,” Balena explained.

“The significant growth in LNG imports occurring over the last two years is linked to efforts being made to reduce dependence, and increase resilience, of the European gas system,” he concluded.

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.

ExxonMobil Corp.,  the largest US oil company and leading LNG producer and a partner of Qatar, will have its third-quarter earnings impacted by price shifts as it also found a buyer for its stake in the Adriatic LNG import terminal offshore the northeast coast of Italy.

Italian energy major Eni has delivered the first commercial liquefied natural gas shipment to the nation’s fourth import terminal at the Tuscan port of Piombino.

SNAM, the Italian natural gas grid and LNG terminals operator, said gas demand in Italy in the first quarter dropped by 19.4 percent to 20.54 billion cubic metres compared with 25.47 Bcm at the same time a year ago even as more LNG cargoes were unloaded at the Panigaglia onshore terminal near Genoa and Italy’s fourth terminal was starting operations at the end of May.

March 10 (LNGJ) – The Lithuanian fuels company Klaipedos Nafta, which also operates the Baltic state’s floating LNG import terminal, has been engaged by Italian grid operator SNAM to provide support services for the future commissioning of the proposed Piombino LNG FSRU project on the Italian West Coast.

   “Klaipedos Nafta has established a reputation as a reliable LNG terminal operator and project developer and will support SNAM in the FSRU installation and subsequent commissioning and testing of the floating terminal,” said the Lithuanian company.

Jan 20 (LNGJ) - Italy’s Societa Nazionale Metanodotti (National Pipeline Company), also known as SNAM, plans to invest €10 billion ($10.8Bln) in natural gas pipelines and LNG facilities in its revised budget through to 2026. SNAM said €6.3Bln would go on pipelines, including upgrading the Adriatic Line. A further €1.4Bln would be spent on two LNG floating storage and regasification units (FSRUs) and €1.3Bln would go on expanding and upgrading gas storage sites.

   “Within a backdrop of extreme uncertainty and volatility, Snam has succeeded in guaranteeing maximum support to cope with the emergency, creating the basis for the necessary actions to tackle the near future,” said Stefano Venier, Chief Executive. “We will significantly increase investments compared to the past to strengthen our infrastructure and contribute to the country's greater energy security for the next few years and beyond,” added Venier.