The Italian natural gas transmission system operator, Snam, agreed to purchase Edison’s 7.3 percent stake in the Adriatic LNG.
Adriatic LNG, the operator of the liquefied natural gas regasification terminal offshore Italy, is owned by Qatar Petroleum, ExxonMobil and Edison.
Snam has also agreed to purchase 100 percent of shares of Infrastructure Transporto Gas (ITG), with both transactions valued at €225 million ($262.7 million).
Moreover, should Adriatic LNG sign new contracts for utilization of the terminal capacity, Snam will recognize to Edison a potential additional consideration under the form of an earn-out. The closing of the transaction is expected by the end of 2017.
With an annual transmission capacity of 9.6 billion cubic meters, ITG is the third player in the Italian gas transportation market. It operates the 83.3 km gas transmission pipeline which extends from Cavarzere (Veneto) to Minerbio (Emilia Romagna) connecting the Adriatic LNG regasification terminal to the Italian gas transmission network.
Operating since 2009, Adriatic LNG is the largest offshore gravity based structure for LNG unloading, storing and regasification and the largest LNG terminal in Italy. with long-term contracts guaranteed for approximately 80 percent of the capacity and medium-term contracts for approximately 12 percent, and an annual regasification capacity equal to around 8 billion cubic meters, representing 50 percent of Italian LNG import capacity and over 10 percent of domestic gas consumption.
Snam notes that 80 percent of the capacity has been booked under long-term contracts and medium-term contracts account for approximately 12 percent. The facility has an annual regasification capacity equal to around 8 billion cubic meters, representing 50 percent of Italian LNG import capacity and over 10 percent of domestic gas consumption.
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