Italian energy infrastructure firm Snam has purchased a 5 bcm/year floating LNG regasification unit (FSRU) from Singaporean company BW LNG, for US$400m. The FSRU, named BW Singapore, was built in 2015 and has a storage capacity of 170,000 m3.
The unit currently works in Egypt and its charter contract with Egas expires in November 2023. Snam will install the FSRU in the upper Adriatic Sea, where it is expected to start operations in the third quarter of 2024.
This purchase comes only weeks after Snam bought another 5 bcm/year FSRU from infrastructure company Golar LNG for US$330m. These decisions reflect the country’s will to diversify its supply sources, strengthen its energy security and reduce its reliance on Russian gas, in the context of the ongoing war in Ukraine. Italy imported 95% of its gas needs in 2021 (76 bcm), and before the war in Ukraine, 43% of its gas imports originated from Russia.
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