Page 4 - GLNG Week 10 2022

GLNG COMMENTARY GLNG

Italy’s Enel ready to revive

Porto Empedocle LNG project

Italy’s Enel is reportedly ready to revive plans for the proposed Porto

Empedocle LNG as Italy seeks to reduce its dependence on Russian gas

PROJECTS & THE Russian invasion of Ukraine continues to relations with Russia continue to deteriorate,
COMPANIES drive changes in various countries’ energy pol- Germany is seeking to establish alternatives,
icies and plans, including in the sphere of LNG. including two LNG import terminals. A memo-
WHAT: On March 8, it was reported that Italian utility randum of understanding (MoU) on the first of
Enel is reportedly ready Enel was preparing to revive previously aban- these terminals was signed last week, illustrating
to revive plans to build doned plans to build the Porto Empedocle LNG the urgency of these initiatives. (See: Germany
the previously cancelled import terminal in Sicily, off the country’s south reaches deal on LNG import terminal, page 11)
Porto Empedocle LNG coast.
project. This emerged at the same time as the Euro- Italian plans
pean Union unveiled plans to cut Russian Now Italy appears to be following suit, based on
WHY: gas imports by two-thirds within a year and initial indications. Enel’s plan to revive the Porto
Italy is urgently seeking phase them out it out altogether by 2030. The Empedocle LNG project was reported by Reu-
to reduce its dependence plan includes ramping up gas imports from ters, which cited the company as saying it would
on Russian gas in the non-Russian suppliers, including LNG ship- be useful for Italy to build two additional LNG
wake of Russia’s invasion ments. For this, Europe will also need to beef up terminals.
of Ukraine. its regasification capacity, following warnings “For this reason, Enel has given availability to
in mid-February – prior to Russia’s attack on resume the Porto Empedocle LNG plant pro-
WHAT NEXT: Ukraine – that the continent’s import terminals ject, that is fully permitted,” an Enel spokesper-
Rome is also looking at had limited capacity available to absorb addi- son told the news service.
installing a new FSRU tional LNG cargoes. This comes as the country aims to eliminate
in Italian waters by the Various European countries are already Russian gas imports within 24-30 months,
middle of this year. taking steps to respond to the unprecedented according to Italian Minister of Energy Tran-
challenge of reducing their dependence on sition Roberto Cingolani. He told state broad-
Russian gas as fast as possible. Last week, Ger- caster RAI that Russia currently accounted for
many u-turned on key elements of its energy around 40% of Italy’s gas imports and that the
policy, having already halted the certification country wanted to find alternative sources of
process for the Nord Stream 2 pipeline from supply covering roughly half of that amount by
Russia. With the pipeline effectively cancelled the spring.
and highly unlikely to be revived as European Reviving Porto Empedocle LNG will not have

P4 www. NEWSBASE .com Week 10 11•March•2022