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Adriatic LNG launches public consultations on Open Season

Milan, February 3rd,  2021 -  Adriatic LNG, the company that owns and operates the first LNG regasification terminal in terms of capacity installed in Italy, located off the Veneto coastline and operating since November 2009, has launched a public consultation on the procedure known as Open Season, for the allocation of long-term LNG regasification capacity. In particular, the subjects of the twofold consultations are, on the one hand, the products to be allocated and, on the other hand, the amendments to the Regasification Code needed to carry out the Open Season.

All gas and LNG market players – both at national and international levels – have access to Adriatic LNG proposals on www.adriaticlng.it/en and can send their observations by March 22nd, 2021.

“With the public consultation we take a further step to create one of the most important events for the entire energy market of the Mediterranean area. The latest developments in the regulatory framework implemented in Italy new rules on the allocation of LNG regasification capacity which have already been successful in other European Countries. Today, Adriatic LNG is able to offer to the market large volumes through long-term allocations” -  stated Sebastien Bumbolo, Adriatic LNG Law & Market manager.

In compliance with the decree of the Italian Ministry of Economic Development of July 8th,  2020 (Official Gazette No. 181 of July 20th, 2020) and respective resolutions from the Italian Regulatory Authority for Energy, Networks and Environment, through the Open Season, Adriatic LNG will be able to offer products with a duration up to 25 years, starting from the procedure closing date.

The capacity offered through the Open Season could reach 153 billion cubic meters per year, considering existing capacity (1.6 bcm/y and, from end 2034, 8 bcm/y), already technically available additional capacity (1 bcm/y) – as provided for in the project for additional terminal capacity submitted to the Ministry of Economic Development – and new capacity to be developed (0.5 bcm/y).

“This is one of the largest regasification volumes ever auctioned, equivalent to over two years of natural gas consumption in Italy if we consider the average annual consumption of recent years. Our offer represents an extraordinary opportunity for national and international gas market players for diversifying their portfolios, by leveraging on the great potential offered by the global LNG market. In this way, Italy will have a new instrument to increase natural gas internal market’s competitiveness by attracting the intrinsic value of an energy source, the gas in the form of LNG, produced in many parts of the World and sold on a competitive market” - highlighted Sebastien Bumbolo.

The Adriatic LNG terminal is, today, the only real international LNG regasification plant, being able to receive almost all types of LNG carriers – i.e. LNG carriers shipping from 65,000 m3 LNG to 217,000 m3 of LNG. “In Italy, we are the only real international hub of the liquefied natural gas market” added Sébastien Bumbolo. This contributes to make Italian gas market more attractive for market players, therefore improving its competitiveness.

Reliability of the infrastructure, energy efficiency, technological innovation, capacity to adapt to the market demands thanks to a wide range of services (such as the Infra-annual subscription through auction of regasification capacity, the flexibility service and the temporary storage service) make Adriatic LNG particularly competitive at international level. As a matter of fact, in 2020, Adriatic LNG served 6 different customers, all prominent within the gas market. The regasification capacity booking rate has been higher than 87%.

“Although Covid-19 pandemic has caused a global crisis of historic dimensions, Adriatic LNG has given proof of great resilience and the results, achieved without any cost for the national system, make us look optimistically to the future” – observed Alfredo Balena, Adriatic LNG  External Relations Manager – “ A future which will necessarily have to combine environmental sustainability with safe energy, as well as  lower costs to the productive system. As Adriatic LNG, we feel ourselves as part of this energy transition. LNG is, indeed, a strategic source for the achievement of climate-environment goals and for the diversification of sources through sea transported competitive and flexible supplies”.
The starting of Open Season procedure is scheduled for summer 2021.