Adriatic LNG Consults on Biggest Open Season
The operator of Italy’s 8bn m3/yr Adriatic LNG import terminal launched February 3 a consultation on what it says is one of the largest open seasons for allocating long-term regasification capacity ever held. However since it started operations over a decade ago, shippers now have more options for delivering gas to Italy.
Controlled by ExxonMobil and Qatar Petroleum, Adriatic LNG is seeking feedback on the products to be allocated and its proposed amendments to Italy's regasification code. All gas market players have access to Adriatic LNG's proposals and can send comments by March 22.
"With the public consultation we take a further step to create one of the most important events for the entire energy market of the Mediterranean area," Adriatic LNG said. "The latest developments in the regulatory framework implemented in Italy new rules on the allocation of LNG regasification capacity which have already been successful in other European Countries. Today, Adriatic LNG is able to offer to the market large volumes through long-term allocations."
Adriatic LNG will be able to offer products with durations of up to 25 years, starting from the procedure closing date. The capacity allocated could reach 153bn m3, taking into account the existing 1.6bn m3 of available annual capacity, which will rise to 8bn m3 after the end of 2034, 1bn m3 of extra technically available capacity and 0.5bn m3 of new capacity due to be developed.
“This is one of the largest regasification volumes ever auctioned, equivalent to over two years of natural gas consumption in Italy if we consider the average annual consumption of recent years," Adriatic LNG said. "Our offer represents an extraordinary opportunity for national and international gas market players for diversifying their portfolios, by leveraging on the great potential offered by the global LNG market."
The open season procedure is due to begin this summer. Since the terminal came on line over a decade ago the Italian gas map has altered: there are the smaller Offshore LNG Toscana terminal and in Croatia, the Krk LNG terminal; and the TransAdriatic Pipeline has this year started flowing gas from the Caspian into southern Italy.