Snam hikes stake in Adriatic LNG to 30%
Snam, a leading Italian energy infrastructure company, has 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, it said on April 3.
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.
The Adriatic LNG terminal, situated approximately 15 km off the Veneto coast, stands as Italy's largest offshore infrastructure for LNG unloading, storage, and regasification. With an annual regasification capacity of 9.6bn m3, equivalent to about 14% of Italy's current domestic gas demand, the terminal plays a crucial role in ensuring the country's energy security, Snam said.
"This operation strengthens Snam's presence in LNG infrastructure, which is increasingly strategic for the security and diversification of Italy's energy supplies,” CEO Stefano Venier commented.
Snam holds stakes in all of Italy's regulated LNG regasification plants, including the Panigaglia terminal, OLT FSRU Toscana, and FSRU Golar Tundra, with a combined regasification capacity of about 23bn m3.
As part of the initiatives undertaken since 2022 to further diversify the country's gas supplies following the Russian-Ukrainian crisis, Snam has also acquired the floating and storage regasification unit BW Singapore, which will start activities off the coast of Ravenna in the first months of 2025.
The total regasification capacity of the country will thus rise to 28bn m3, evenly distributed between the Tyrrhenian and Adriatic sides, an amount corresponding to overall volumes imported via pipeline from Russia in 2021, according to the company.