Italy’s Snam inks deal to develop small and mid-scale LNG plants

Italian energy firm Snam is joining forces with compatriot chemical group Siad to develop projects in the small-scale and mid-scale liquefaction sector.

Snam said on Wednesday the aim of the framework deal is to “foster the use of LNG and bio-LNG as alternative fuels for sustainable mobility and other end uses.”

In addition, the two partners aim to build small and medium-sized plants for the liquefaction of natural gas and biomethane on a global scale, on behalf of third-party customers.

The duo plans modular and standardised plants, with capacities ranging from 50 kilo-tonnes per year to 100 ktpa in the case of small-scale plants, and from 200 ktpa upwards for mid-scale plants, Snam said.

Moreover, Snam said the plants would use Italian technology, based on an “energy-optimised cryogenic nitrogen cycle through the use of two machines (expanders/compressors).”

These plants allow the transformation of methane from a gaseous to a liquid state and represent an “ideal solution” to enable energy transition on global markets thanks to their price competitiveness, Snam said.

According to the Italian firm, the savings compared to a traditional solution could reach as much as 30% of the cost of the plant.

“With this agreement, Snam is entering the liquefaction infrastructure sector, which will be key to enable sustainable mobility by road, rail and potentially sea, as well as decarbonising other energy uses,” Marco Alverà, CEO of Snam, said.

“LNG, especially in its ‘bio’ version, makes it possible to reduce both polluting and CO2 emissions, making a decisive contribution to air quality and the fight against climate change, and to boosting the circular economy, optimising the management of the waste cycle and agricultural and food waste,” he said.

First project in the making

As part of the collaboration between Snam and Siad, the duo plans to launch a small-scale project in Campania this year, with a capacity of 50 ktpa.

The project has already obtained European funding, Snam said.

The plants, which will be operated by Snam, will also ensure the security of LNG and bio-LNG supply to other regions of southern Italy, shortening the chain between supply and end-users, but also serving a rapidly growing market, it said.

LNG trucks have registered quite an increase in Italy in the last five years from fewer than 100 to about 3,500 units. Furthermore, there are now more than 100 filling stations in the country, according to consultancy REF-E.

“Thanks to their versatility, liquefaction plants, in addition to fuelling sustainable mobility, will also be functional for other uses, such as converting power generation from diesel to natural gas and some energy-intensive industrial processes,” Snam said.

Snam added the framework deal is likely subject to subsequent binding agreements.

Most Popular

BGN delivers its first LNG cargo to Germany, secures Egypt deal

Switzerland-based energy trader BGN has completed its first LNG delivery to Germany, while simultaneously securing a deal to supply Egypt with LNG.

Samsung Heavy wins contract for Eni’s Coral Norte FLNG

South Korean shipbuilder Samsung Heavy has secured a preliminary contract for Eni's second FLNG project in Mozambique, Coral Norte (Coral North), according to shipbuilding sources.

DET says Stade FSRU to be deployed in Jordan

State-owned German LNG terminal operator DET has sub-chartered the 2021-built 174,000-cbm FSRU, Energos Force, for deployment in Jordan, as it works on the next steps for the delayed Stade LNG import facility in Germany.

More News Like This

Italian FSRU operator launches small-scale LNG service

Italy’s OLT Offshore LNG Toscana, the operator of the FSRU Toscana, has launched its small-scale liquefied natural gas service, enabling small vessels to load LNG at the FSRU.

Italian FSRU operator to hold new regas capacity auctions in July

Italy’s OLT Offshore LNG Toscana, the operator of the FSRU Toscana, will hold new regasification capacity auctions in July.

Snam CEO Venier steps down

Snam's CEO, Stefano Venier, will step down as the chief executive officer and general manager of the Italian LNG terminal operator at the end of this month.

Snam, SPP extend LNG MoU

Italian LNG terminal operator Snam has extended its memorandum of understanding with Slovakia’s gas supplier SPP with the aim of assessing potential cooperation on security of natural gas supplies.