Snam and Edison to work on small-scale LNG projects in Italy

Italian energy players Snam and Edison have signed an agreement for the joint development of small-scale LNG projects in the country.

Small-Scale LNG (SSLNG) refers to all logistical activities with which small and medium quantities of liquefied natural gas (LNG) and liquid biomethane (Bio-LNG), are handled for heavy goods and sea transport, and off-grid users.

On 25 July, Snam and Edison signed a memorandum of understanding on cooperation on the development of the SSLNG market in Italy.

This initiative is to leverage on the development of the Italian LNG sector. Also, thanks to planned new infrastructure investments, it is to encourage the progressive replacement of diesel and boost the use of Bio-LNG.

Moreover, the two companies share the vision in that LNG is the most solid and effective energy vector to decarbonise large-scale transport.

Thanks to small-scale infrastructure as well as the use of LNG in maritime bunkering, the market is expected to more than double by 2025 with potential growth of up to 1.5 million tonnes in consumption by 2030. The development of the small-scale supply chain will also enable the progressive use of Bio-LNG thus further contributing to the decarbonisation plan.

Under the MoU, which is not meant to be exclusive, the parties will identify and develop opportunities for collaboration along the entire SSLNG value chain. Snam is active in the management of LNG infrastructure, while Edison is the leading LNG import operator in Italy. In 2021, Edison established the first SSLNG integrated logistics supply chain in the country through its coastal depot in Ravenna.

On the Bio-LNG front, the deal envisages that the two groups identify opportunities for collaboration based on the portfolio of projects currently in place and that are being developed by the two partners with reference to both the commodity produced and the development of assets.

Stefano Venier, Snam CEO, said: “We lay the foundations for a long-term collaboration aimed at enhancing the value of Snam’s LNG system, also through the future development of new small-scale supply points.”

“Last year, we launched the first integrated logistics supply chain on LNG in Italy, fully aware this vector will play a key role in decarbonising maritime as well as heavy goods transport,” said Nicola Monti, CEO of Edison. “Through this agreement, we can further boost SSLNG market development as well as Bio-LNG usage in Italy, thus maximising our synergies with assets, projects and skills.”