Italy's Snam says new floating LNG terminal to be operational by March 2025

Italy’s Snam announced on July 12 that it expects a new floating LNG terminal to become operational by March 2025. The terminal, called BW Singapore, was purchased by Snam from BW LNG in July 2022, with the deal finalised last year.

The BW Singapore can operate as an LNG carrier and a floating storage and regasification unit. Built in 2015, the ship has a storage capacity of about 170,000 m³ of LNG and a regasification capacity of about 5bn m³/year.

“Works are proceeding according to schedule on Ravenna's offshore regasifier, which will land 8.5 km from Punta Marina at the end of the year, and become operational in the first quarter of 2025,” Snam said.

The floating LNG terminal is currently at the construction site in Dubai for the necessary adjustments to its location on the coast in front of Marina di Ravenna. Work on the breakwater, approximately 900 metres long, which is currently in the tendering phase, will begin in August 2024 and end in October 2026.

With the commissioning of BW Singapore, Italy’s total regasification capacity will rise to 28bn m³/year, a volume corresponding to about 45% of the Italian gas demand in 2023. This figure matches the quantity imported from Russia in 2021, according to Snam.

Snam recently exercised its pre-emption right to elevate its stake in Terminale GNL Adriatico, the company owning the Adriatic LNG regasification terminal located off Porto Viro. The announcement comes following an agreement by VTTI, a Dutch energy storage and infrastructure firm, to acquire a majority stake in the terminal.

Upon the completion of the transaction, which is expected by the end of 2024, Snam's stake in Adriatic LNG will increase from the current 7.3% to 30%. VTTI will hold a 70% stake in the terminal. The transaction is subject to regulatory approvals.