Italy took a key step to ensure Russia’s energy independence with the arrival of a new facility to import liquefied natural gas.
The floating storage regasification unit Golar Tundra docked in Piombino on the coast of Tuscany on Sunday night. The terminal is one of two that will allow Italy to replace pipeline gas flows from Russia, which are already near historic lows.
Italy imported about 40% of its gas from Russia before the Ukraine invasion, and moved quickly under Prime Minister Mario Draghi to cut it, largely thanks to flows from North African countries such as Algeria . Russia now accounts for less than 10% of Italy’s imports and the goal is to completely replace it by winter 2024, according to Eni SpA.
Italian state-controlled gas network operator Snam SpA bought the Golar Tundra last year and refitted it as a floating LNG terminal in recent months. A second terminal is expected at the end of the year in Ravenna, on the eastern coast of the country.
“Italy signed agreements with alternative countries to Russia for the import of approximately 18 billion cubic meters of gas per year,” Simona Benedettini, an independent gas market consultant, said in an interview. The Piombino terminal is of “vital importance in reducing dependence on Russian gas, especially considering the upcoming winter which may not be as mild as this year’s.”
Local activists in Piombino have organized protests against the terminal, citing its potential impact on fishing and tourism. The terminal is expected to be operational in May.
Photo Credit – iStock.com/StevanZZ
