Italian energy company Snam and compatriot Edison are joining forces to further develop the country’s small-scale liquefied natural gas (LNG) industry.
In this regard, the two companies have signed a memorandum of understanding to cooperate in the small-scale LNG sector to foster the decarbonization of land, sea and rail transport, as well as off-grid industrial and domestic users, according to a press release. by Snam published on Monday.
This initiative would take advantage of the development of the Italian LNG sector, also thanks to the planned new investments in infrastructure, to encourage the gradual replacement of diesel and simultaneously boost the use of bio-LNG, Snam said.
Snam purchased two FSRUs this year, one from Golar LNG and one from BW LNG. The company also signed an agreement in May to convert the LNG carrier Golar Arctic into an FSRU.
Decarbonizing the transport sector
Snam said in the statement that the two companies share the vision that LNG is “the strongest and most efficient energy carrier to decarbonize large-scale transportation by reducing environmental impact through the replacement of diesel.”
To date, the LNG market for the transport of heavy goods in Italy already represents around 4,000 trucks, around 130 filling stations and an annual consumption of around 200,000 tonnes, according to the press release.
Through small-scale infrastructure as well as the use of LNG in marine bunkering, Snam expects the market to more than double by 2025 with potential growth of up to 1.5 million tons. consumption by 2030.
With an increase in the usage market, the number of service stations would increase to around 300 when fully operational.
In addition, the development of the small-scale supply chain would also enable the progressive use of bio-LNG, further contributing to the decarbonization plan announced by the EU with its Fit for 55 package, Snam said.
The entire artisanal chain
Under the agreement, which is not meant to be exclusive, the parties will identify and develop opportunities for collaboration across the small-scale LNG value chain, Snam said.
This includes truck loading services for road or sea transport, liquefaction and distribution via service stations or satellite depots.
Snam is active in the management and development of small-scale LNG infrastructure, including filling stations, while Edison, a unit of EDF in France, and its partners launched the new LNG terminal last year. on a small scale in the port of Ravenna.
CEO of Snam Stefano Venier said in the statement that this agreement lays the foundation 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”.
“Our goal is to expand the infrastructure needed to accelerate the replacement of higher-emitting vehicles, particularly in heavy-duty and maritime transport, and to enable the increased use of biomethane,” Venier said.
“Last year we launched the first integrated logistics supply chain on LNG in Italy, fully aware that this vector will play a key role in the decarbonization of maritime transport and the transport of heavy goods”, Nicholas Montisaid Edison’s CEO.
“Thanks to this agreement, we can further stimulate the development of the small-scale LNG market as well as the use of bio-LNG in Italy, thus maximizing our synergies with assets, projects and skills,” said Monti.