Italy would ideally want 4 new LNG terminals, Eni head says

MILAN, Nov 28 (Reuters) – Italy must considerably improve its liquefied pure fuel (LNG) import capability, the chief government of Eni(ENI.MI) mentioned on Monday, including that the nation would ideally want 4 new LNG terminals.

The nation at present has three terminals, which have a capability of round 17 billion cubic metres (bcm) of fuel, at present close to to saturation.

The federal government has deliberate to arrange two different floating storage and regasification models (FSRU) to extend the capability to 27 bcm, however a much bigger effort is required to assist Rome substitute Russian provides with fuel coming a variety of African suppliers via ships.

“We now have moved from Russian fuel coming from pipelines to fuel approaching ships. We at present haven’t got sufficient LNG terminals… we would want 4 further terminals,” Eni Chief Govt Claudio Descalzi mentioned, talking at a enterprise occasion in Milan.

The difficulties of including capability are proven by the Italian metropolis of Piombino which has launched a authorized problem towards a government-backed venture for a brand new LNG terminal there.

Following Russia’s invasion of Ukraine, Italy has leveraged its long-standing ties with Africa to switch fuel coming from Moscow with gasoline coming from Algeria and Egypt in addition to the Center East and different suppliers.

Gasoline flows from Moscow have fallen from round 38% of Italy’s whole consumption to round 10% in latest months.

“Subsequent yr, I can count on Russian fuel be round 6-7%… if will probably be there,” Descalzi mentioned.

The change within the origin of fuel compels Italy to strengthen its vitality infrastructure within the south, get rid of bottlenecks within the fuel grid and enlarge its storage system, he mentioned.

Italian fuel grid operator Snam (SRG.MI) just lately introduced plans to take a position greater than 3 billion euros to spice up the fuel community and so as to add new storage websites.

Reporting by Francesca Landini and Giancarlo Navach
Enhancing by Keith Weir

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