Italy Purchasing Two FSRUs for Energy Security

Following the example of the Netherlands and Germany, Italy has chosen FSRUs for its energy needs. Italian energy firm; Snam has signed agreements to acquire two FSRUs from Bermuda-based LNG shipper; Golar LNG. The Italian government has mandated Snam to initialize the negotiations for bringing FSRUs to Italy and reducing the extensive Italian dependence on Russian Energy.

The first vessel being purchased is the GOLAR TUNDRA, a 2015-built FSRU that can also operate as an LNG carrier. It is being purchased for $350 mn. The GOLAR TUNDRA has a storage capacity of 170,000 m3 of LNG and a regasification capacity of 5 bcm/year. Snam CEO; Stefano Venier has stated that this FSRU alone will contribute 6.5 % of domestic needs and bring the country’s regasification capacity to 25% of the demand. The GOLAR TUNDRA will begin regasification by the spring of 2023 and will be located in central-northern Italy, the area with the greatest estimated gas consumption.

The second vessel in question is the GOLAR ARCTIC, which was built in 2003 and will have to undergo conversions that will take 2 years to function as an FSRU. This vessel is being purchased for $286 mn. This vessel, once converted, will have a storage capacity of 140,000 m3 and will be located in the port area of Portovesme, Sardinia.

Demand for FSRUs has spiked significantly as they have become the go-to option for energy security in the eyes of energy-dependent European nations. Italy currently imports over 90% of its gas from Russia and the Ecological Transition Minister, Roberto Cingolani, has stated that it would take around 3 years to replace Russian gas fully.

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