The BG Group (Reading, UK) has gained approval to construct and operate a USD 330 million liquefied natural gas (LNG) import terminal in Brindisi port, on the SE coast of Italy. The project was approved by the Italian authorities, who are expected to issue a formal decree shortly. Negotiations for LNG supply to the terminal and for onward sales to gas users are under way. BG is looking to initiate the project by the end of 2003.
The regasification terminal, to be constructed in two phases and operated by BG group, would enable imports of natural gas into the Italian market by the end of 2006. Phase 1 envisages a throughput of 3 million tons per annum increasing to 6 million tons per annum in the second phase. The project represents one of the largest ever investments in Italy by a UK-listed company. The Brindisi terminal, the first to be built in the south of Italy, is placed favourably receive imports from northern Africa. It is also positioned in close proximity to areas of high power demand in the Puglia region and surrounding areas of Italy. The import terminal is within 5km of the 29,600 km national gas transmission and distribution network of Snam Rete Gas, in which ENI has a 59.8% share.
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