Italian energy company Edison and energy infrastructure builder Snam have agreed to collaborate on projects along the entire small-scale LNG (SSLNG) value chain
Under the non-exclusive agreement, Snam and Edison have agreed to identify and develop opportunities for collaboration along the SSLNG value chain that includes both road and ship transport, liquefaction and distribution.
The agreement also allows the two companies to target collaborations around production and development of biofuel products including bio-methane and bio-LNG, based on the partners’ respective project portfolios.
“Thanks to small-scale infrastructure and the use of LNG in maritime bunkering, the market is expected to more than double by 2025 with a potential growth of up to 1.5M tonnes in consumption by 2030,” a statement from Snam and Edison said.
“The development of the small-scale supply chain will also enable the progressive use of bioLNG, thus further contributing to the decarbonisation plan announced by the EU with its Fit for 55 package.”
“Our aim is to extend the infrastructure needed to speed up the replacement of higher-emissions vehicles, particularly in heavy goods and sea transport, and to enable the increased use of biomethane, in line with the European targets of the RePowerEU plan,” Snam chief executive Stefano Venier said.
In October 2021, Petrolifera Italo Rumena, Edison and Enagás announced the start of operations at the small-scale LNG terminal in Ravenna, which is supplying LNG for road transport and for shipping. The Depositi Italiani LNG terminal terminal has an LNG storage capacity of 20,000 m3and an output capacity of more than 1M m3of liquefied gas per year, said to be sufficient to supply at least 12,000 trucks and up to 48 ferries.
At the time of its opening, Edison chief executive Nicola Monti said, “We are proud to announce the inauguration of a new infrastructure of a strategic nature for our country, in line with the strategy to combat climate change.”
Edison is the leading liquefied natural gas import operator in Italy and in 2021, it established the first SSLNG integrated logistics supply chain in the country through the coastal depot in Ravenna as well as a gas transport vessel dedicated it its supply. Snam is active in the management of LNG infrastructure where it is developing small-scale LNG distribution systems and a new liquefaction station in central-southern Italy.
In addition to being covered by EU’s fossil fuel emissions reduction policies, LNG imports are increasingly being sought as Europe attempts to replace natural gas piped from Russia in the wake of Russia’s war against Ukraine.
The partners said the agreement may be subject to subsequent binding agreements to be determined in accordance with the applicable regulatory framework, including the unbundling regulation.
