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Energy markets remade

“The Golar Tundra, bought by Snam in 2022, is the latest result of Italy’s energy diversification effort. Starting in May, the unit will regasify 5 billion cubic metres of LNG annually. That’s on top of increased supplies via pipeline and another incoming regasification unit, which will allow Italy to do away with Russian imports “by year’s end”

Permission to dock. On Sunday night, the Golar Tundra finally arrived in the port of Piombino, where it will help Italy diversify further away from Russian gas. The $350 million floating regasification unit (FRSU), bought by Italian energy company Snam in 2022, can regasify up to 5 billion cubic metres of liquefied gas (LNG) per year.

This new LNG terminal, Italy’s fourth overall, will only be fully operational in May, upon completion of the connections with the national grid’s methane pipeline hub.

Not so Russian anymore. Another Snam-operated FRSU, BW Singapore, is expected to dock in the Adriatic port of Ravenna and become operational in 2024. Together, the two FRSUs are projected to convey 13% of Italy’s gas needs. That’s on top of increased supplies via gas duct from non-Russian sources, thanks to the energy security push initiated by former Prime Minister Mario Draghi and continued under his successor Giorgia Meloni.

Enterprise Minister Adolfo Urso said that these efforts are on track to allow Italy “to free itself completely from dependence on Russian gas by the end of this year.” When the second FRSU becomes operational, he explained, “we will completely zero our dependence.”

Russian gas amounted to 40% of Italy’s imports in 2021; it was slashed to 16% in 2022.

“With these ships, we will complete our autonomy, also thanks to the agreements made with Algeria,” as well as “the doubling of the TAP gas duct from Azerbaijan,” the reopening “of the historic gas pipeline from Libya,” and the gas “that will be able to arrive from the eastern Mediterranean.””