Snam, SIAD partner on small- and mid-scale LNG

Italy’s energy infrastructure operator Snam has signed an agreement with SIAD to cooperate in the small- and mid-scale LNG sector.

The two companies aim to boost the use of LNG and Bio-LNG as alternative fuels.

Under the agreement, the pair have agreed to build small- and medium-sized plants for the liquefaction of natural gas and biomethane on a global scale, on behalf of third-party customers.

The plants proposed by Snam and SIAD will be modular and standardised, with capacities ranging from 50 ktpa (kilo-tonnes per year) to 100 ktpa in the case of small-scale plants and from 200 ktpa upwards for mid-scale plants.

Marco Alverà, CEO of Snam, said, “With this agreement, Snam is entering the liquefaction infrastructure sector, which will be key to enable sustainable mobility by road, rail and potentially sea, as well as decarbonising other energy uses.“

The plants designed by Snam and SIAD use technology are based on an energy-optimised cryogenic nitrogen cycle through the use of two machines (expanders/compressors).

These plants allow methane to be transformed from a gas to a liquid state and represent an ideal solution to enable energy transition on global markets thanks to their price competitiveness, Snam’s statement reads.

As part of the collaboration between Snam and SIAD, a project will be launched in Campania in 2021, with a capacity of 50 ktpa (small-scale), which has already obtained European funding.

The plants, which will be operated by Snam, will also ensure the security of LNG and Bio-LNG supply to other regions of Southern Italy, shortening the chain between supply and end users and serving a rapidly growing market. LNG trucks have registered quite an increase in Italy in the last five years from fewer than 100 to about 3,000 units and there are now around 90 filling stations.