Adriatic LNG is seeking public comment regarding one of the largest long-term LNG regasification capacity auctions in the Mediterranean and amendments to Italy’s regasification code
As much as 153 billion cubic meters per year (bcm/y) of LNG regasification capacity could be considered for the next 25 years during Adriatic LNG’s open season. All gas and LNG market players – both at national and international levels – will have access to Adriatic LNG proposals on www.adriaticlng.it/en and can send comments until 22 March 2021.
The auction by Adriatic LNG complies with new rules put in place by the Italian Ministry of Economic Development and the Italian Regulatory Authority for Energy, Networks and Environment. As a result, Adriatic LNG will be able to offer products with a duration up to 25 years, with the start of open season during Europe’s summer 2021.
Calling the open season “one of the most important events for the entire energy market” in the Mediterranean, Adriatic LNG law and market manager Sebastien Bumbolo said, “This is one of the largest regasification volumes ever auctioned, equivalent to over two years of natural gas consumption in Italy if we consider the average annual consumption of recent years.”
Adriatic LNG said the capacity offered through the open season could reach 153 bcm/y, considering existing capacity (1.6 bcm/y and, from end 2034, 8 bcm/y), already technically available additional capacity (1 bcm/y) – as provided for in the project for additional terminal capacity submitted to the Ministry of Economic Development – and new capacity to be developed (0.5 bcm/y).
Mr Bumbolo said “Our offer represents an extraordinary opportunity for national and international gas market players to diversify their portfolios by leveraging on the great potential offered by the global LNG market. In this way, Italy will have a new instrument to increase natural gas internal market’s competitiveness by attracting the intrinsic value of an energy source, the gas in the form of LNG, produced in many parts of the world and sold in a competitive market.”
Operating since 2009 off the Veneto coast, the Adriatic LNG regasification terminal provides about 10% of Italy’s national gas consumption. Adriatic LNG has regasified and delivered to the national pipeline network more than 69 bcm of gas supplied by ships carrying LNG from Qatar, Egypt, Trinidad and Tobago, Equatorial Guinea, Norway, Nigeria, the United States and Angola. The Adriatic LNG terminal can accommodate LNG carriers with capacities from 65,000 m3 to 217,000 m3 of LNG. Adriatic LNG is operated by ExxonMobil Italiana Gas and Qatar Terminal Limited, a subsidiary of Qatar Petroleum, and SNAM.
“In Italy, we are the only international hub in the liquefied natural gas market,” noted Mr Bumbolo.
This is important to countries needing access to secure supplies of clean-burning natural gas for the energy transition, said Adriatic LNG external relations manager Alfredo Balena. “At Adriatic LNG, we feel part of this energy transition. LNG is a strategic source for achieving climate goals and for the diversification of sources through sea-transported competitive, flexible supplies.”
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