BW Group’s business unit BW LNG has inked a deal with Italian energy company Snam to sell its 2015-built floating storage and regasification unit (FSRU) BW Singapore for roughly $400m.
The deal will see Snam acquire 100% of the share capital of FSRU I Limited, whose sole asset is the 5bn cu m per year FSRU, which can also operate as a 170,000 cu m LNG carrier.
The FSRU, which is currently fixed to Egas in Egypt until November 2023, is expected to be installed in the upper Adriatic Sea, close to the coast of Ravenna, with operations set to commence in the third quarter of 2024.
The BW Singapore will be the second FSRU Snam acquired in a little over a month. Earlier this year, the company picked up the 2015-built Golar Tundra from Tor Olav Trøim’s Golar LNG for $350m.
“The two FSRUs will contribute 13% of the national gas demand alone, bringing regasification capacity to over 30% of demand,” said Snam CEO Stefano Venier, adding that: “Securing these two new units was not easy, in a market characterised by a shortage of supply and international competition that was growing strongly with each passing week.”
