December 04, 2024 [VTTI]- VTTI and Snam, industry leaders in energy infrastructure, have completed their acquisition of shares in Terminale GNL Adriatico S.r.l. (Adriatic LNG), the company that owns the liquefied natural gas (LNG) regasification terminal operating in the waters off Porto Tolle (Rovigo), the largest in Italy.

The transaction follows Snam and VTTI’s announcements on April 3, 2024, where VTTI signed an agreement to acquire a majority stake in the company. In this context, Snam exercised a pre-emption right to increase its stake in Adriatic LNG from 7.3% to 30%. The two companies now own 70% and 30% of Adriatic LNG respectively, and the transaction has been finalized following the completion of necessary regulatory approvals.

In this new structure, Alexandra Thomas has been appointed as CEO and Alessandro Conta as COO of Adriatic LNG.

Alexandra joins Adriatic LNG from Neptune Energy, where she was most recently Managing Director for Egypt. Previously, she held roles of increasing responsibility at Statoil, Shell, Vattenfall and Tullow Oil, including managing businesses in various countries across Europe and Africa.

Alessandro joins Adriatic LNG from Snam Rete Gas, where he gained extensive experience in operating Plants and Complex Systems across the Oil and Gas industry.

“Facilitating the import and distribution of LNG aligns with VTTI’s strategy to support the global energy transition and ensure security of supply. Together with Snam, we can provide financial strength, operational efficiency, market access and future-proof infrastructure to leverage this asset even further as an important secure and reliable energy source for Italy and other European markets.’’ – says Guy Moeyens, CEO of VTTI.

“This transaction marks a key-milestone towards further diversification and security of Italy’s energy supplies”, Snam’s CEO Stefano Venier commented. “The 30% stake in Adriatic LNG and our operational role in the company underscore our LNG portfolio’s relevance in the European energy context, where Snam is now the third largest operator for regasification capacity. We look forward to working closely with VTTI and ensuring optimal management of key energy infrastructure for the country”.

As part of VTTI’s Strategy 2028, VTTI is building on its foundation as an energy storage and service terminal operator at key ports worldwide, while investing in and developing additional energy infrastructure needed for the energy transition, including LNG regasification terminals, renewable natural gas (RNG) and other waste to value production facilities, ammonia & hydrogen infrastructure, and other renewable energy storage & services. VTTI’s aim is to accelerate growth, with 50% of the company’s earnings coming from transitional and sustainable energy sources by 2028. Adriatic LNG is VTTI’s second stake in an LNG regasification terminal, after Dragon LNG located in the United Kingdom where VTTI owns 50% of the terminal.

The transaction strengthens Snam’s presence in the LNG business, which is increasingly strategic for the security and diversification of Italy’s energy supplies. LNG supplies currently account for approximately 25% of Italy’s overall gas consumption. Further to the 30% stake in Adriatic LNG, Snam holds significant stakes in all the remaining regulated LNG regasification terminals currently operating in Italy, including: the Panigaglia terminal, in operation since 1971 near La Spezia, the OLT FSRU Toscana offshore Livorno, operational since 2013, and the FSRU Italis LNG, operating in Piombino since July 2023, for a total regasification capacity of about 23 billion cubic meters. The floating and storage regasification unit BW Singapore, acquired by Snam in 2023, will also kickstart activities by the first quarter of 2025 offshore Ravenna, bringing Italy’s regasification capacity to 28 billion cubic meters, evenly distributed between the Tyrrhenian and Adriatic coasts, at an amount corresponding to overall volumes imported via pipelines from Russia in 2021 (pre Russia-Ukraine war).

In the first 11 months of the year, Adriatic LNG injected more than 8 billion cubic meters of natural gas into the Italian gas grid (equivalent to 15% of national consumption), 3% more compared to the same period in 2023. Adriatic LNG is the third entry source for gas imports into Italy, after the pipeline imports from Algeria and Azerbaijan.

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