VTTI to control Italy's biggest LNG terminal, Snam to get 30% (updated)
03/04/2024 19:35
(Recasts to add Snam CEO comment, details)
By Francesca Landini
MILAN, April 3 (Reuters) - Energy storage group VTTI
will get a 70% stake in Italy's biggest liquefied natural gas
(LNG) terminal, with grid operator Snam SRG.MI owning the
rest, the Milan-listed group said on Wednesday, announcing a
deal to be finalised by year-end.
Snam, which is controlled by the Italian government, said in
a statement it had exercised its pre-emption right to increase
its stake in the infrastructure dubbed Adriatic LNG to 30% from
7.3%.
The move comes after ExxonMobil XOM.N and QatarEnergy last
week agreed to sell their stakes in the terminal to a consortium
led by Dutch group VTTI. It confirms what two sources had told
Reuters.
"This operation strengthens Snam's presence in LNG
infrastructure, which is increasingly strategic for the security
and diversification of Italy's energy supplies," Snam CEO
Stefano Venier said, adding the group would support the
terminal's expansion projects.
Snam did not give financial details for the deal while
sources had previously said the deal would value the entire
terminal around 800 million euros ($866 million) including debt.
REPLACING RUSSIAN GAS
The terminal is located about 9 miles (15 km) off the Veneto
coastline and has a regasification capacity of 9 billion cubic
metres (bcm) of natural gas per year.
Europe has increased LNG imports after Russia's invasion of
Ukraine in 2022 drastically curtailed gas coming through
pipelines.
Snam holds stakes in all the remaining LNG terminals
currently operating in Italy for a total regasification capacity
of about 23 bcm.
The group will set up an additional floating LNG terminal
offshore the city of Ravenna at the beginning of next year,
increasing Italy's regasification capacity to 29 bcm, equal to
the gas Italy used to import from Russia via pipeline.
The closing of the transaction is subject to regulatory
authorisations.
Commodity trader Vitol -- which is a shareholder in VTTI
together with Australia's IFM and Abu Dhabi's ADNOC -- has also
agreed to buy Italian oil refiner Saras SRS.MI .
($1 = 0.9234 euros)
(Reporting by Francesca Landini; Editing by Angus MacSwan;
editing by David Evans)
((francesca.landini@thomsonreuters.com; +39 02 66129437;
Reuters Messaging: reutersitaly.thomsonreuters@reuters.net))