Snam has agreed to acquire a floating storage and regasification unit from Singapore shipowner BW LNG in a deal worth $400m, it has been confirmed.
The Italian energy infrastructure company has named the vessel as the 170,000-cbm BW Singapore (built 2015).
The FSRU, which is 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.
Snam said it expects the FSRU to begin operations in the third quarter of 2024 following the finalisation of the works required for mooring and connection to the gas transport network.
This is Snam’s second FSRU acquisition in a little over a month after it agreed to pay Golar LNG $350m to acquire its only FSRU the 170,000-cbm Golar Tundra (built 2015).
As part of the transaction, Golar will lease the FSRU from Snam as an LNG carrier for a limited period of time after closing, and assist Snam in the preparatory work for the installation of the vessel in the selected port.
“With this operation, we are providing Italy with its second new floating regasification unit thus making a decisive contribution to the country’s energy security and diversification,” said Snam chief executive Stefano Venier.
“The two FSRUs acquired in the last month by Snam will contribute 13% of the national gas demand alone, bringing regasification capacity to over 30% of demand.”
Snam said the BW Singapore’s position in the upper Adriatic Sea will allow it to intercept potential new LNG flows from North Africa and the Eastern Mediterranean.
“Securing these two new units was not easy, in a market characterised by a shortage of supply and international competition that was growing stronger with each passing week,” said Venier.
BW LNG chief executive Yngvil Asheim said: “We are pleased to work with Snam to help Italy and Europe diversify its gas infrastructure and contribute to energy security when BW Singapore’s current contract expires in November 2023.
“At BW LNG we are committed to our strategy to provide floating LNG infrastructure that supports the journey to a low carbon society,” she added.
Snam said the acquisition, which will be financed from its own resources, will be paid in two tranches.
