EUROPE: Snam and Edison team up on small-scale LNG projects in Italy
Snam and Edison have signed a Memorandum of Understanding (MoU) aimed at pushing forward the development of small-scale LNG initiatives in Italy, including for the maritime sector. Announcing their cooperation, the two companies said they would work to encourage the uptake of liquid biomethane (Bio-LNG). They noted that through small-scale development, the LNG and Bio-LNG market is expected to grow up to 1.5 million tons by 2030 from the current volume of 200,000 tons per year.
Snam CEO Stefano Venier commented: 'Through this agreement, we lay the foundations for a long-term collaboration aimed at enhancing the value of Snam' s LNG system, also through the future development of new Small-Scale supply points. 'Our aim is to extend the infrastructure needed to speed up the replacement of higher-emission vehicles, particularly in heavy goods and sea transport, and to enable the increased use of biomethane, in line with the European targets of the RePowerEU plan as well as with our mission of supporting the decarbonisation path.' He continued: 'Last year, we launched the first integrated logistics supply chain on LNG in Italy, fully aware this vector will play a key role in decarbonising maritime as well as heavy goods transport.'
Under the new agreement, which is not meant to be exclusive, the two companies will identify and develop opportunities for collaboration along the SSLNG value chain - from truck loading services to road or ship transport, liquefaction and distribution via petrol stations or satellite depots. On the Biomethane/Bio-LNG front, the agreement envisages that the two groups will identify opportunities for collaboration based on a portfolio of projects currently in place and that are also being developed by the two partners. Earlier this month, Snam signed an agreement with BW LNG to acquire the floating storage and regasification unit (FSRU) BW Singapore.
Built in 2015, BW Singapore has a maximum storage capacity of about 170,000 cubic metres of LNG and a nominal continuous regasification capacity of about 5 billion cubic metres per year.
The FSRU, which is currently bound by a charter agreement with a third party until November 2023, is expected to be installed in the upper Adriatic Sea, close to the coast of Ravenna.
Operations are scheduled to commence in the third quarter of 2024.