Snam inks FSRU conversion deal with Golar LNG
Italy's gas grid and midstream assets operator Snam has inked a €269mn ($282.7mn) deal with Golar LNG to convert a 2003-build LNG carrier into a floating storage and regasification unit (FSRU) for use off Sardinia, Golar LNG said May 18.
At a time when Italy is seeking extra LNG supply to help phase out Russian gas. The FSRU will bring gas shore in the coastal town of Portovesme. Sardinia can easily access LNG from north African exporters, particularly Egypt, which in April struck a deal to increase LNG deliveries to Italy's Eni.
Snam will provide additional capital expenditure to allow Golar LNG to refit the Golar Arctic, enabling it to store up to 140,000 m3 of liquefied gas. Once the FSRU has been converted, it will be sold into Snam's ownership.