Snam and Edison to develop small scale LNG projects in Italy

This initiative will leverage on the development of the Italian LNG sector, also thanks to planned new infrastructure investments, to encourage the progressive replacement of diesel and simultaneously boost the use of liquid biomethane (bio-LNG).

The two companies share the vision in that LNG is the most solid and effective energy vector to decarbonise large scale transport by reducing the environmental impact through diesel replacement. Currently, the LNG market for heavy goods transport in Italy already accounts for approximately 4000 trucks, approximately 130 filling stations, and an annual consumption of approximately 200 000 t. Thanks to small scale infrastructure as well as the use of LNG in maritime bunkering, the market is expected to more than double by 2025 with a potential growth of up to 1.5 million t in consumption by 2030. With an increase in the usage market, the number of filling stations is envisaged to grow to approximately 300 when fully operational. The development of the small scale supply chain will also enable the progressive use of bio-LNG, thus further contributing to the decarbonisation plan announced by the EU with its Fit for 55 package.

“Through this agreement,” Stefano Venier, Snam CEO commented, “we lay the foundations for a long-term collaboration aimed at enhancing the value of Snam’s LNG system, also through the future development of new small scale supply points. Our aim is to extend the infrastructure needed to speed up the replacement of higher-emission vehicles, particularly in heavy goods and sea transport, and to enable the increased use of biomethane, in line with the European targets of the RePowerEU plan, as well as with our mission of supporting the decarbonisation path.”

“Last year, we launched the first integrated logistics supply chain on LNG in Italy, fully aware this vector will play a key role in decarbonising maritime as well as heavy goods transport,” Nicola Monti, CEO of Edison, added. “Through this agreement, we can further boost small scale LNG market developments as well as bio-LNG usage in Italy, thus maximising our synergies with assets, projects, and skills; all elements Edison owns across the whole value chain.”

Small scale LNG refers to all logistical activities with which small and medium quantities of LNG and bio-LNG are handled for the heavy goods and sea transport and off-grid users.

Under the agreement, which is not meant to be exclusive, the parties will identify and develop opportunities for collaboration along the entire small scale LNG value chain – from truck loading services to road or ship transport, liquefaction and distribution via petrol stations or satellite depots ¬– depending on their respective areas of expertise. Snam is active in the management of LNG infrastructure where it is developing small scale systems to upload the distribution as well as a new liquifying station in Central-Southern Italy and the network of stations (seven as of today) from Snam4Mobility. Whereas Edison is the leading LNG import operator in Italy, and in 2021 it established the first small scale LNG integrated logistics supply chain of the country through its coastal deport in Ravenna, as well as a gas transport vessel dedicated to its supply.

On the biomethane/bio-LNG front, the agreement envisages that the two groups identify opportunities for collaboration based on the portfolio of projects currently in place and that are being developed by the two partners with reference to both the commodity produced and the development of assets.

The agreement may be subject of subsequent binding agreements to be determined by the parties in accordance with the applicable regulatory framework (also including the unbundling regulation).

Read the article online at: https://www.lngindustry.com/small-scale-lng/26072022/snam-and-edison-to-develop-small-scale-lng-projects-in-italy/