Snam to buy FSRU from BW Group for $400mn
Italy’s Snam has signed a deal to acquire the floating storage and regasification unit (FSRU) BW Singapore from BW Group for $400mn, the companies said in a joint statement on July 6.
BW Singapore, built in 2015, has a maximum storage capacity of about 170,000 m3 of LNG and a nominal continuous regasification capacity of about 5bn m3/year. The unit has been deployed from the outset as an FSRU but can also operate as a carrier for the transport of LNG.
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The FSRU, which is currently bound by a charter agreement with a third party until November 2023, is expected to be installed in the upper Adriatic Sea, close to the coast of Ravenna. Operations are scheduled to commence in the third quarter of 2024, following the completion of the authorisation and regulatory process as well as the finalisation of the works required for mooring and connection to the gas transport network.
The acquisition will be financed by Snam from its own resources and will be paid in two tranches. The FSRU will be made available to Snam at the closing date of the deal, which is expected by the end of 2023.
In the coming months, Snam will also begin activities to contract LNG regasification capacity which will gradually become available from the start-up of BW Singapore in Italy, the companies said.
Snam recently bought Golar LNG’s FSRU Golar Tundra for $350mn and inked a deal to convert LNG carrier Golar Arctic into an FSRU.