OMV, Snam Seek to Build Austrian LNG Market

Austria's national oil and gas company OMV and one of its gas pipeline operators TAG have signed a memorandum of understanding (MoU) with Italy's Snam to collaborate on LNG mobility in Austria.

Under the agreement, the three companies will consider construction of a small-scale LNG liquefaction plant, drawing up the outline of an LNG supply contract and the development of an LNG market, OMV stated on September 24.

“We believe that the demand for LNG on the road will grow. Studies suggest that the number of LNG trucks will increase to 280,000 in Europe by 2030,” OMV CEO Rainer Seele said. “Less CO2 and particulate emissions as well as less noise add up to environmentally sound goods transport. This is why we should get on with expanding the requisite infrastructure and supply.”

Snam CEO Marco Alvera noted that Italy boasted the highest number of CNG and LNG distributors in Europe, with Snam “investing to further strengthen the network for both cars and trucks.” It is building a series of new stations in partnership with IP, which it announced in July.

Snam is set to expand its LNG footprint further through the purchase of a 49% stake in Italy’s second largest LNG import terminal, announced last week.