A consortium of BP, Edison, and chemical company Solvay plan to construct a 290-Mmcf/d LNG terminal on the site of a former Solvay chemicals plant near Livorno. In January 2005, Italys environmental ministry approved plans for the construction of the project. However, local government leaders have expressed opposition to the project, which could delay its planned initial production date of 2012.
In March 2005, Spains Gas Natural (GN) presented plans to local officials for the construction of two LNG receiving terminals in Italy, located in the northern city of Trieste and the southern port of Taranto. Under its proposal, GN would build facilities at each location with production capacities of 770 Mmcf/d each, in order to fuel its plans to expand its presence in the Italian Natural Gas market. In the case of the Trieste site, Endesa would join with GN in the project, offloading much of the plants output for its nearby power plant. GN planned to complete the projects by 2010, though neither has yet to receive full regulatory approval.
Royal Dutch Shell signed an agreement in August 2005 with Italys ERG to build an LNG receiving terminal next to ERGs Oil refinery at Priolo Gargallo, Sicily. Shell stated that, pending approval of government officials, it would begin construction of the $510 million, 770-Mmcf/d facility by 2007, for completion in 2010.
It is unclear if all of the proposed LNG projects will actually proceed to completion. It is unlikely that Italys domestic market could absorb this much new natural gas supply, especially considering the expansion of piped gas imports from North Africa. However, there has been some talk of using Italy as a natural gas hub, landing LNG there for re-export to the rest of Europe.