VTTI, IKAV to take majority stake in Italy’s Adriatic LNG terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, joined forces with German asset manager IKAV to buy a majority stake in Italy’s Adriatic LNG terminal.

According to a statement, VTTI and IKAV entered a consortium to acquire majority ownership of the JV which operates the regasification terminal located off the coastline of Veneto region in Italy.

US energy firm ExxonMobil has a 70.7 percent stake in Adriatic LNG, while state-owned LNG giant QatarEnergy holds 22 percent and Italy’s Snam owns 7.3 percent.

The closing of the transaction is expected in the second half of 2024, VTTI said.

The firm did not provide any additional information regarding the acquisition.

Both VTTI and IKAV have a long-term strategic view on the terminal and aim to further explore growth opportunities in the country.

VTTI brings operational knowledge of energy terminals and infrastructure, while IKAV contributes existing in-depth experience in the Italian energy market, as well as a long-term track record in managing and operating both renewable and conventional assets, it said.

“The consortium will ensure seamless operations and continuous support to Adriatic LNG, to enhance security of energy supply in Italy, the second largest gas consuming country in the European Union,” VTTI said.

Snam’s CEO Stefano Venier confirmed in November last year that ExxonMobil was working to sell its stake in the Adriatic LNG terminal.

At the time, ExxonMobil and QatarEnergy were in talks with BlackRock to sell their stakes in the LNG terminal operator.

Once the deal is complete, Snam will have the option to decide whether to exercise its right to increase its stake in Adriatic LNG, Venier said.

2023 was record year for Adriatic LNG

Launched in 2009, the world’s first offshore gravity-based LNG import terminal sits about 14 kilometers offshore of Porto Levante and has regasification capacity of about 9.6 bcm per year.

During the last year, the regasification terminal sent 8.5 billion cubic meters of natural
gas into the national pipeline network, up 7 percent compared to 2022, covering over 14 percent of national gas consumption and confirming itself as the third entry source for Italian gas imports.

The terminal broke its previous best annual record, scored in 2022, when it sent 7.9 billion cubic meters of gas into the national grid.

It received 75 LNG carriers during the last year, mainly from Qatar and the United States but also from other geographical areas, including, for the first time, Mozambique.

In March 2023, Adriatic LNG received its 1000th cargo of LNG since 2009.

In total, from 2009 to 2023, 1,058 LNG carriers arrived at the regasification terminal, for a total of 92 billion cubic meters of gas sent into the national gas grid.

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