The Adriatic LNG terminal: a reliable alternative in order to diversify gas supply in Italy

With an utilization rate of over 90% of its regasification capacity (far higher than current average of other Italians energy facilities that is around 70%) the Adriatic LNG terminal – located 15 kilometres off the Veneto coast – confirms its strategic role in the gas supply sector in Italy. In a nutshell this is the big picture Alistair Routledge, Managing Director of Adriatic LNG, highlighted in its speech during the European Gas Infrastructure for Interconnectivity and Interoperability Forum, which unites in Rome senior EU gas industry executives, thought-leaders and government authorities.

In a gas market like Italy, dependent on foreign imports for over 90% of consumptions, the Adriatic LNG Terminal has opened up the Italian market to new supplies of gas from different regions through the successful delivery of more than 170 cargoes to the end of November, 2011, coming mainly from Qatar but also from Egypt, Trinidad & Tobago, Equatorial Guinea and Norway.

With a nominal regasification capacity of 8 billion cubic meters of natural gas per year the Terminal is contributing to improve the country’s energy security of supply. This has already been demonstrated when extended closures of the Transitgas pipeline in Switzerland (from Norway and Holland) and the Greenstream pipeline (from Libya) had no significant impact on the Italian market.

“Today LNG imported via sea is about 12% of total gas imports in Italy - Alistair Routledge declared – This rate is increasing thanks to the start up of our terminal. In 2010 we sent out into the national grid nearly 7 billion cubic meters, equivalent to about 10.4% of total imports and 8, 5% of total consumption of gas at the national level. The Terminal is proving to be a strategic gateway for LNG global imports to Italy”.

Eighty percent of the Terminal capacity is utilized by Edison for a period of 25 years, to regasify LNG imported from Qatar’s North Field, as part of a supply agreement with RasGas II. The remaining 20% is open for third party access, out of which 12% has already been allocated according to the procedures defined by the Italian Ministry of Economic Development and the Regulatory Authority for Electricity and Gas.

Terminal’s residual capacity (about 600 millions cm per year) is regularly offered on the market through the subscription of available capacity procedures as published in the web site www.adriaticlng.it.

“During these two years - Adriatc LNG’s Managing Director said – we have been proving to be a reliable facility providing dependable services of high quality and added value that are elements appreciated by actual and potential users when searching for a strategic partner”.