Imports of LNG constitute a very small portion of Italys total natural gas imports. The country has a single LNG receiving terminal at Panigaglia, located on the countrys western coast near La Spezia. According to Snam, the terminals operator, the Panigaglia facility produced 240.9 Mmcf/d of natural gas in 2005.Natural gas companies are planning to construct several LNG receiving terminals in Italy, in order to meet estimated future demand. BG plans to construct an LNG receiving terminal in Brindisi, along Italys southeast coast. In late 2004, it awarded a contract for construction of the facility to Italys Tecnimont. BG expected the facility to begin operations in 2009, with an initial output capacity of 770 Mmcf/d. In March 2006, the federal government overturned a ban by local authorities on the construction of the project, who had opposed the terminal on environmental grounds. BG has already secured a supply of LNG for the terminal from its own integrated production-gasification project in Egypt.
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.
ExxonMobil and Qatar Petroleum each hold 45 percent stakes in the proposed North Adriatic LNG project, an effort led by Italys Edison to build an LNG receiving terminal on Italys northern Adriatic coast. The project consists of a 770-Mmcf/d, offshore regasification facility near Rovigo, using LNG supplied by the RasGas II gas liquefaction project in Qatar. In May 2005, the consortium awarded a contract for construction of the main LNG recieiving terminal to Norways Aker Kvaerner. Edison has stated that it expects initial production from the project by 2007.
The Italian city of Livorno, on Italys central west coast, has been considered as a site for two LNG proposals. In May 2004, the Offshore LNG Terminal (OLT) consortium received environmental approval for its proposed LNG receiving terminal near Livorno; OLT, composed of Golar LNG and Italys CrossGas, plans to permanently moor a standard LNG tanker offshore, convert it into a floating storage and regasification unit, then connect it to the coast via a sub-sea pipeline. Once completed, the Livorno offshore facility will have an initial capacity of 390-Mmcf/d. In March 2006, Endesa purchased a 25 percent stake in the project. Construction is slated to begin in mid 2006, with completion by 2008.