Italian energy player Snam has finalized the acquisition of the floating storage and regasification unit (FSRU) BW Singapore which will be deployed offshore Ravenna, Italy, contributing to the country’s energy security and diversification.
On July 6, 2022, Snam and BW LNG signed the agreement for the acquisition by Snam Group of 100% of the share capital of FSRU I Limited, which owns FSRU BW Singapore, for a total consideration of approximately $400 million.
Built in 2015, BW Singapore can operate both as an LNG carrier and an FSRU. It has a storage capacity of about 170,000 cubic meters of LNG and a regasification capacity of about 5 billion cubic meters per year.
The FSRU will be located off the coast of Ravenna, around 8 kilometers away from the Punta Marina area. It is expected to start operations in 2025, after concluding the related permitting and regulatory process and finalizing the necessary works for mooring and connecting it to the transportation network, which have already started.
Italian oilfield services provider Saipem was awarded a contract for the construction of facilities for this FSRU while compatriot Rosetti Marino secured a contract covering engineering, materials procurement, construction (EPC), and load-out for delivery of a new gas receiving platform – jacket and deck – mooring facilities for the FSRU and LNG carriers. Greek company Corinth Pipeworks will manufacture and supply steel pipes for the development of an offshore and onshore natural gas pipeline for the FSRU.
In the coming months, Snam will also start activities for contracting the LNG regasification capacity that will gradually become available with the FSRU operations start.
Commenting on the acquisition, Snam CEO Stefano Venier said: “By finalising the BW Singapore acquisition, Snam takes another important step towards ensuring energy security and diversification of Italy’s energy supplies, in a challenging and constantly evolving global context. Together with the Golar Tundra , which started its operations in Piombino in July 2023, the two FSRUs will increase the country’s total regasification capacity from the current 25% to around 40% of the overall natural gas demand”.
BW LNG CEO Yngvil Åsheim stated: “We are delighted to collaborate with Snam to strengthen Italy’s energy security and diversify Europe’s gas infrastructure through the FSRU BW Singapore. We are also pleased to support Snam with all ship management and modification works necessary for allowing the vessel to start operations in Italian waters. At BW LNG, we are committed to the development of floating LNG infrastructure solutions, as the world moves towards a low carbon society and countries look for sustainable, affordable, and reliable energy.”