Italy: ERG Withdraws from Melilli LNG Terminal

Italian refiner and seller ERG has said that it is withdrawing from a planned LNG terminal project in Melilli, Italy citing changes in the financial scenario of the company.

ERG had previously entered into a joint venture with Shell Energy Europe, Ionio Gas with each taking a 50 per cent stake in the venture. Through this joint venture, the companies had planned to construct the terminal in the Syracuse region in Italy, which would have an annual capacity of 8 billion cubic metres. 

While feedback on the project from all the relevant bodies and authorities had been positive, ERG said, it nevertheless was withdrawing from the terminal build.

"The decision to withdraw from the project stems from the profound changes that have occurred in both the energy and the economic and financial scenarios, following the recession that began in 2008, as well as the present configuration of the group's businesses," a statement for the company said.

The terminal project is still in the development stage and has yet to receive final approval from the authorities.