By Giulia Petroni 
 

Snam SpA said Wednesday that it has agreed to acquire a floating storage and regasification unit from Norway-based shipping conglomerate BW Group to strengthen Italy's security and diversification of supply.

The Italian gas network operator said the unit is set to be installed in the upper Adriatic Sea and start operations in the third quarter of 2024, following authorization and regulatory processes. It has a maximum storage capacity of around 170,000 cubic meters of liquefied natural gas and regasification capacity of around 5 billion cubic meters a year, Snam said.

The acquisition amounts to approximately $400 million, the company said.

"The two FSRUs acquired in the last month by Snam will contribute 13% of the national gas demand alone, bringing regasification capacity to over 30% of demand, as soon as we will get the permits to positioning them and get them connected to the national transmission network," Chief Executive Officer Stefano Venier said.

Last month, Snam acquired a floating regasification unit from Golar LNG Ltd, with operations expected to start in the spring of 2023.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

July 06, 2022 09:51 ET (13:51 GMT)

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