DNV supports the development of LNG transport and storage capabilities in Italy

DNV, the independent energy expert and assurance provider, has recently advised Italy-based Snam Group (“Snam”) on its acquisition of two Floating Storage & Regasification Units (FSRUs) from Golar LNG and BW Gas Cyprus Limited (“BW”). DNV performed the buyer’s technical and environmental Due Diligence for these important assets, the Golar Tundra and the BW Singapore, which will play a key role in Italy’s energy security and diversification.

The two vessels can operate both as FSRUs and liquefied fossil gas (LNG) carriers, each with a storage capacity of 170,000 m³ of LNG and a nominal continuous regasification capacity of 5bn m³/yr. Their combined capacity should cover around 15% of Italy’s yearly gas needs.

Although the EU should be able to pivot away from Russian oil and coal supply with relative ease, curbing its reliance on Russian gas deliveries requires investing in new infrastructure, as a large part of import capabilities currently rely on pipelines transporting gas by land.  

Though phasing out these imports will cause a drop in overall gas use (-9% in 2024, compared with DNV’s pre-war models[1]), it will increase the share of imported LNG in the European gas mix, as it becomes an important component of Europe’s energy security strategy.  

Current limitations on on-land regasification capacity (two to five years are necessary to implement the new infrastructure needed) have prompted multiple countries, including Italy, Germany and France, to expand their FSRU fleets and develop new LNG terminals. Announcements were made in the spring expressing demand for at least six new FSRUs across the Union – as many as there are now.

“Our collaboration with Snam in 2022 is a major move in the direction of Italy’s energy security. We have experience in the global development of FSRUs – having been involved in more than 40 newbuild and conversion FSRU projects globally –, and our independent, end-to-end technical expertise throughout the LNG value chain has led us to publish a set of Recommended Practices for LNG operators, said Santiago Blanco, Executive Vice-president and Regional Director Southern Europe, Middle East and Latin America, Energy Systems at DNV. We aim to provide the gas industry with the highest level of technical support and services to address its most challenging issues, with an accelerated timeline.”

DNV’s advisory services for the FSRU segment include every stage of the asset life cycle, from project due diligence, support for the design, site selection and risk analysis, all the way through to modelling and simulation of integrated ship machinery systems to help optimize energy efficiency, emissions, costs and safety, and cyber security. 

DNV will be present at this year’s edition of Gastech in Milan, Italy, to present gas-related capabilities, innovations and projects in the energy and maritime industries. Meet us at the Norway Pavilion (North Blvd.).

Read the latest issue of the OGV Energy magazine HERE