Announced yesterday (Janth Through the US$400 million purchase, Snam will take full ownership of the FSRU “BW Singapore”, a facility with a maximum storage capacity of approximately 170,000 m3 (cubic meters) of liquefied natural gas (LNG).
Also equipped with a nominal continuous regasification capacity of around 5 billion3 per year, the unit can also be used as a carrier for the transport of LNG.
Stefano Venier, CEO of Snam, explained that the purchase contributes to Italy’s energy security and diversification: “The two FSRUs acquired by Snam last month alone will contribute 13% of the national gas demand and bring the regasification capacity to over 30%. of demand once we get the permits to position them and connect them to the national transmission grid.”
The ship’s position, currently in the upper Adriatic, will allow the new unit to intercept potential new LNG flows from North Africa and the eastern Mediterranean.
The new FSRU is expected to be operational in the third quarter of 2024 after completion of the permitting and regulatory process, in addition to work related to connecting the unit to the gas grid.
Commenting on the agreement, Yngvil Asheim, CEO of BW LNG, said: “We are delighted to be working with Snam to help Italy and Europe diversify its gas infrastructure and contribute to energy security when BW Singapore’s current contract expires in November 2023 .”
“A cornerstone of this strategy is our FSRU segment, where we will continue to explore growth opportunities. We have also ordered four LNG tankers for delivery in 2025.”
With many parts of Europe relying on Russia for up to 40% of their gas supplies, countries have sought to increase their energy independence and diversity since the onset of the ongoing Russia-Ukraine conflict.
In recent months, countries like Greece, Lithuania, Germany and the UK have strengthened their respective energy security by conducting FSRU-related operations or providing support packages aimed at advancing indigenous energy technologies.