Italian firm on track to bring FSRU for its LNG terminal online next year

Italian energy player Snam has disclosed that the activities related to a floating storage regasification unit (FSRU) for its Ravenna liquefied natural gas (LNG) terminal off the coast of Northern Italy are progressing according to schedule, thus, the planned date for the unit’s entry into operation is still in the first quarter of 2025.

Based on an update shared by Snam on July 12, work on the Ravenna offshore regasification plant is expected to be finished by the year’s end, while the start of operation is targeted for the first quarter of 2025.

The announcement was made at a press conference held during the visit of Italy’s Minister of the Environment and Energy Security, Gilberto Pichetto Fratin, to the future plant’s construction site. In addition to the Minister, the conference was attended by the Mayor of Ravenna, Michele de Pascale, and Snam’s CEO, Stefano Venier.

The trio discussed the roadmap for the arrival of the FSRU BW Singapore, a vessel with an annual regasification capacity of 5 billion cubic meters. Snam inked a deal to purchase it in 2022, with the acquisition finalized in December 2023.

With the entry into service of the FSRU, which is currently undergoing adjustments in a shipyard in Dubai before being deployed off the coast of Ravenna, Italy’s regasification capacity is anticipated to increase to 28 billion cubic meters per year, corresponding to around 45% of its 2023 gas demand. 

As this is said to correspond to the amount of gas imported from Russia in 2021, the country’s energy dependence on Moscow is set to reduce, contributing to its energy security. This is in line with the trend of cutting energy ties with Russia and diversifying gas supply prompted by the EU’s latest sanctions against the country.

According to the Italian player, the bulk of onshore work, around 90%, is done, while offshore work has hit the 50%-mark, with 450 thousand and 800 thousand hours worked, respectively. This includes dismantling the Petra platform, which started in February 2024. 

The installation of the structures of the new mooring platform, around 440 meters long and weighing over 14,000 tonnes, followed suit, beginning in mid-May. Work on the 900-meter breakwater, currently in the tender phase, is slated to last from August 2024 to October 2026, ensuring the safety and continuous operation of the plant in adverse weather and sea conditions.

Snam has taken other steps to diversify its energy supply lately. The firm exercised the pre-emption right to increase its stake in Italy’s Terminale GNL Adriatico from 7.3% to 30% after VTTI inked a deal to get a hold of the majority ownership in the project. 

The Italian player also launched a market test on hydrogen demand in Italy and gathered non-binding expressions of interest for the transport and storage of CO2 as part of the carbon capture and storage (CCS) project the firm is developing with Eni, also in Ravenna.