Snam buys floating LNG unit from Golar to improve Italy’s energy security

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MILAN, June 1 (Reuters) – Italy’s Snam  has agreed to acquire a 5 billion cubic metre floating LNG regasification terminal (FSRU) from Golar LNG  and expects to finalise talks for a similar one by the end of the month, it said on Wednesday.

The $350 million deal with Golar will support the country’s energy security and diversification, the gas company said in the statement.

Italy, which sources about 40% of its gas imports from

Russia, has been scrambling to diversify its energy supplies as

the conflict in Ukraine escalates.

The acquisition of the FSRU will “contribute to about 6.5% of domestic needs, thus bringing the country’s regasification capacity to over 25% of the demand,” Chief Executive Stefano Venier said in a statement.

The vessel – with a storage capacity of around 170,000 cubic metres of liquefied natural gas (LNG) – will be located in central-northern Italy, close to areas in the country with the highest gas consumption.

Venier added the gas company was in exclusive negotiations to buy another FSRU of similar size, with talks expected to be finalised by end of June. He did not specify who the talks were with.

Italy currently has three working LNG terminals.

In mid-May Snam signed another contract with Golar LNG for a vessel to be converted into an FSRU and to be installed in a southern port of Sardinia. 

(Reporting by Maria Pia Quaglia, editing by Giulia Segreti)

PHOTO: The new LNG import terminal purchased by Snam to help safeguard Italy’s energy security and diversification (Photo courtesy of Snam)

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