Italian energy firm Snam has completed the previously announced purchase of BW LNG’s 2015-built FSRU BW Singapore for about $400 million.
In July, Snam and BW LNG signed the purchase deal for the FSRU with a maximum storage capacity of about 170,000 cubic meters of LNG and a nominal continuous regasification capacity of about 5 billion cubic meters per year.
Snam announced in a statement on Monday it has finalized the acquisition of 100 percent of the share capital of FSRU I Limited, which owns BW Singapore.
The FSRU will be located off the coast of Ravenna, around 8 kilometers away from the Punta Marina area.
Snam said the unit 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.
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, it 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,” Snam CEO Stefano Venier said.
He said that together with the 170,000-cbm 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 percent to around 40 percent of the overall natural gas demand.
BW LNG CEO Yngvil Åsheim said that the company will support Snam with all ship management and modification works necessary for allowing the FSRU to start operations in Italian waters.
The FSRU worked in Egypt under a charter with Egas which expired in November.
According to its AIS data, it left Egypt on November 26 and is currently on its way to the UAE.