Snam Acquires Floating LNG Unit to Strengthen Italy's Security of Supply

By Giulia Petroni

Snam SpA said Wednesday that it has acquired a floating regasification unit from Golar LNG Ltd. for $350 million as Italy aims to strengthen security of supply and replace Russian gas pipeline imports.

The Italian gas network operator said the vessel has a storage capacity of 170,000 cubic meters of liquefied natural gas and a continuous regasification capacity of 5 billion cubic meters a year. It will be located in central-northern Italy.

"The role of the new FSRU for the benefit of our country will be essential: alone it will contribute to about 6.5% of domestic needs thus bringing the country's regasification capacity to over 25% of the demand," Snam's Chief Executive Officer Stefano Venier said. The company is also in exclusive negotiations to acquire a second FSRU of a similar size, and expects to finalize a deal by the end of June, he said.

Operations of the Golar Tundra's FSRU are expected to start in the spring of 2023, subject to authorization and regulatory processes as well as the construction of the infrastructure connecting the terminal to the existing gas transport network, Snam said.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

June 01, 2022 05:01 ET (09:01 GMT)

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