Snam, GE Eye Micro-Liquefaction in Italy
Italian gas grid Snam and Baker Hughes GE said May 28 they have agreed to work together to develop four micro-liquefaction plants in order to make LNG and bio-LNG available for transport.
By the end of this year, they will determine the feasibility of the four future micro-LNG units, combined output from which would be about 140,000 metric tons per year of LNG or bio-LNG at a total investment cost of €50mn-€80mn ($58mn-$93mn). The agreement also includes the opportunity to develop further micro-LNG units elsewhere in Italy and abroad.
Snam notes that LNG for heavy transport is a rapidly expanding sector, increasing in Italy from less than 100 to about 1,000 trucks since 2015. The number of stations supplying LNG has reached 20 units. It says the four new micro-LNG units could therefore support an increase in that number 15,000 units in future years, especially boosting low-carbon transport options in southern Italy.
Two weeks ago, Snam agreed to buy a Canadian company’s Italy-based compressed natural gas (CNG) compressor manufacturing business, in order to boost its ability to build new filling stations.
Meanwhile Italy's interim prime minister Carlo Cottarelli, appointed May 28, is expected to name a cabinet shortly; however the two largest political parties have said they will not support him, increasing the probability that Italian president Sergio Mattarella may call fresh elections for early this autumn.
In other Italian news, Australia-listed Po Valley Energy has submitted an application for a production concession on the Podere Gallina licence, its UK partner United Oil & Gas said May 29; planned facilities would be capable of producing at up to 150,000 m3/day and enable the development of the small onshore Selva gas field on the licence.