Adriatic LNG, the company that owns and operates the first LNG regasification terminal in terms of capacity installed in Italy, located off the Veneto coastline and operating since November 2009, has launched a public consultation on the open season, for the allocation of long-term LNG regasification capacity.
In particular, the subjects of the twofold consultations are, on the one hand, the products to be allocated and, on the other hand, the amendments to the regasification code needed to carry out the open season.
All gas and LNG market players – both at national and international levels – have access to Adriatic LNG proposals on the company’s website. Observations can be submitted up to the deadline of 22 March 2021.
“With the public consultation we take a further step to create one of the most important events for the entire energy market of the Mediterranean area. The latest developments in the regulatory framework implemented in Italy new rules on the allocation of LNG regasification capacity which have already been successful in other European Countries. Today, Adriatic LNG is able to offer to the market large volumes through long-term allocations”, stated Sebastien Bumbolo, Adriatic LNG Law & Market manager.
In compliance with the decree of the Italian Ministry of Economic Development of 8 July 2020 (Official Gazette No. 181 of 20 July 2020) and respective resolutions from the Italian Regulatory Authority for Energy, Networks and Environment, throughout the open season, Adriatic LNG will be able to offer products with a duration up to 25 years, starting from the procedure closing date.
The capacity offered through the open season could reach 153 billion m3/y, considering existing capacity (1.6 billion m3/y and, from end 2034, 8 billion m3/y), already technically available additional capacity (1 billion m3/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 billion m3/y).
“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. Our offer represents an extraordinary opportunity for national and international gas market players for diversifying 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 on a competitive market”, highlighted Bumbolo.
The starting of Open Season procedure is scheduled for summer 2021.
Read the article online at: https://www.lngindustry.com/floating-lng/04022021/adriatic-lng-launches-public-consultations-on-open-season/