The Mediterranean’s LNG infrastructure is evolving rapidly, enhancing energy security, sustainability, and capacity through strategic upgrades and expansions
The Mediterranean region is witnessing significant advancements in LNG infrastructure, from the terminals in Spain to the FSRUs in Italy and Greece to the developments in Turkey and into North Africa. Each segment of the region has a story to tell of upgrades, strategic moves, increasing regional energy security and sustainability.
Spain - Cartagena LNG Terminal
The Cartagena LNG terminal, operated by Enagás, represents a pivotal node in Spain’s energy framework. This terminal, strategically located to support both import and export activities, has undergone substantial upgrades to enhance its capacity and efficiency. With five storage tanks boasting a total capacity of 587,000-m3, the Cartagena terminal has significantly increased its loading flow rate to 7,222-m3 per hour, positioning it among the fastest in Spain. Enagás continues to implement further upgrades, aiming at adapting to the evolving demands of the LNG market.
Spain - Barcelona LNG Terminal
The Barcelona LNG terminal, also operated by Enagás, holds the distinction of being the oldest LNG regasification terminal in Spain, having commenced operations in 1969. It features six storage tanks with a total capacity of 760,000-m3 and a regasification capacity of 602.99 billion cubic feet annually. Recent developments include initiatives to transform the port into a major LNG distribution hub for the Mediterranean. These initiatives involve adapting port infrastructure to facilitate LNG supply to barges and smaller ships, installing LNG-fuelled generators for moored vessels, and converting terminal equipment to LNG power.
France - Fos Cavaou and Fos Tonkin LNG Terminals
In France, the Fos Cavaou and Fos Tonkin LNG terminals have become central to the nation’s energy strategy. Operated by Elengy, these terminals have experienced significant utilization increases and infrastructure expansions. In 2022, the utilisation rate of Elengy’s terminals soared to an unprecedented 95%, driven by heightened demand following disruptions in Russian gas supplies. By mid-2023, utilisation remained high at around 85%. In December 2023, Elengy expanded Fos Cavaou’s infrastructure by inaugurating two new LNG truck loading bays, doubling the terminal’s loading capacity. Fos Tonkin began LNG rail transport in March 2023, marking its first such operation aimed at reducing carbon emissions and improving logistical efficiency. Elengy also completed the acquisition of the remaining shares in Fosmax LNG from Total, gaining full control of the Fos Cavaou terminal. This acquisition is part of Elengy’s effort to consolidate its operations and strengthen its market position.
The acquisition of the shares was financed mainly by an increase in Elengy’s capital reserved for the Société d’Infrastructures Gazières (SIG). The SIG now owns close to 18% of Elengy’s capital, with the balance being held by GRTgaz.
For Elengy and for its shareholders, this acquisition reflected the ambition to increase the industrial development of its sites at Fos-sur-Mer: Fos Cavaou and Fos Tonkin.
Elergy told Riviera that it is preparing for its terminals to evolve into multi-molecule hubs that can handle a variety of molecules. Terminals will facilitate the import of renewable and low-carbon energy carriers such as hydrogen, ammonia and will support the development of bioLNG.
Italy - Adriatic LNG Terminal
The Adriatic LNG terminal, situated 14 km offshore Porto Levante, plays a crucial role in Italy’s energy infrastructure. Operated by Adriatic LNG, a joint venture, this terminal has recently seen changes in its ownership structure. VTTI and IKAV have formed a consortium to acquire the majority ownership of Terminale GNL Adriatico Srl, with VTTI holding a 70% stake and Snam increasing its stake from 7.3% to 30%. In 2023, the terminal achieved record activity, receiving 75 LNG carriers and processing 8.5 billion cubic meters of natural gas, covering approximately 14.5% of Italy’s total gas consumption.
Italy - OLT Offshore LNG Toscana
The OLT Offshore LNG Toscana terminal has also witnessed notable advancements. In June 2023, the terminal increased its regasification capacity from 3.75 billion to 5 billion cubic meters annually. This expansion was complemented by maintenance operations from April to October 2024 to ensure continued operational efficiency. The terminal is undergoing extraordinary maintenance and is expected to be back online by the end of 2024.
Italy - Ravenna LNG Terminal
The Ravenna LNG terminal, constructed by Depositi Italiani GNL, is on track for commissioning in 2024. This terminal is set to enhance Italy’s LNG distribution capabilities, supported by the recent acquisition of the FSRU BW Singapore by Snam. The FSRU, with a storage capacity of 170,000-m3 and a regasification capacity of five billion cubic meters annually, will significantly boost the terminal’s operational capacity. These developments are pivotal for Italy’s strategy to diversify its energy sources and improve energy security.
Italy - Sardinia LNG Terminal
The Sardinia LNG terminal in Oristano-Santa Giusta, developed by Edison, is another significant project in Italy’s energy portfolio. Construction is said to be progressing well, with a targeted completion date in late 2024. This terminal will play a crucial role in enhancing LNG distribution in the region, supporting road transport refuelling and vessel bunkering.
Croatia – Krk LNG Terminal
In 2024, the Krk LNG terminal in Croatia has been undergoing significant expansions to enhance its capacity. The facility, operated by LNG Croatia LLC, is increasing its annual capacity from 2.9 billion cubic meters to 6.1 billion cubic meters. The European Commission approved EUR25M for this expansion, which includes the installation of a new regasification module.
Greece - Alexandroupolis LNG Terminal
In Greece, the Alexandroupolis LNG project is set to transform the country’s energy landscape. This FSRU is expected to handle up to 5.5 billion cubic meters of natural gas annually. Recognised as a European Project of Common Interest (PCI), the terminal aims to diversify energy sources and enhance regional energy security. By early 2024, significant progress had been made towards operational readiness, with the installation of the floating unit completed and testing phases underway. The project has secured substantial funding and is poised to begin receiving and regasifying LNG shipments by the end of 2024.
Greece - Revithoussa LNG Terminal
The Revithoussa LNG terminal continues to be a cornerstone of Greece’s energy strategy. Located on the island of Revithoussa, near Athens, this terminal has undergone significant upgrades to meet increasing demand, with operator DEFSA noting all the berthing slots on offer for 2024 and 2025 have been sold. This is equivalent to 75% of the nameplate capacity. It has expanded its storage to 225,000-m3 and regasification up to 1,400-m3 per hour is now available.
Cyprus - Vasilikos LNG Terminal
The Vasilikos LNG terminal in Cyprus, although facing delays, remains a critical project for reducing the island nation’s reliance on imported oil. Based on the 2002-built Etyfa Prometheas FSRU the project is now expected to be operational by 2025, with significant financial backing from European institutions. Once completed, the terminal will play a key role in Cyprus’s energy strategy, providing a stable supply of natural gas and supporting the transition to cleaner energy. According to VesselsValue data, in October 2023, Etyfa Prometheas undertook sea trials close to the Chinese shipyard where the vessel is being converted.
Turkey - Saros and Dörtyol FSRU Terminals
In Turkey, the Saros and Dörtyol FSRU terminals are essential components of the country’s LNG strategy. Owned by BOTAŞ, these terminals have significantly increased Turkey’s LNG import capacity. The Saros terminal, with its strategic location on the Aegean coast, aims to handle 5-6 billion cubic meters annually. The Dörtyol terminal, located on the Mediterranean coast, complements these efforts.
Egypt
Egyptian Natural Gas Holding Co (EGAS) announced in April 2024 that it had chartered the FSRU Hoegh Galleon to boost energy supply ahead of peak demand in the summer. The FSRU is likely to be deployed at the Ain Sokhna port, replacing the FSRU BW Singapore, which departed late last year to be deployed in Italy from Q4 2024.
Expanding the regional portfolio
Snam, the Italian energy infrastructure company, has been strategically increasing its stake in key LNG terminals. In addition to its increased stake in the Adriatic LNG terminal, Snam has solidified its presence in Italy’s LNG infrastructure by acquiring stakes in ITG, OLT Offshore LNG Toscana, and Panigaglia LNG.
Looking even further ahead, to North Africa, Italy’s Saipem has been awarded a contract worth about US$1Bn for an offshore gas field development off Libya, while drilling contractor Valaris’ deepwater drillship Valaris DS-7 will undertake a 12-well campaign off West Africa worth about US$364M, starting in Q2 2024 with a duration of 850 days. The gas project is being developed by a consortium involving the National Oil Company of Libya and Eni North Africa.
Developing Libya’s natural gas into an LNG resource would enhance the Mediterranean region’s LNG infrastructure. Even without this long-term plan, the region is undergoing significant transformations, driven by the need for energy security, diversification, and sustainability, which puts the future of LNG infrastructure in the Mediterranean in a promising position.
© 2024 Riviera Maritime Media Ltd.