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First LNG cargo arrives at Adriatic LNG Terminal

With a capacity of 8 billion cubic meters of gas per year, the terminal will make a significant contribution to increasing and diversifying Italy’s energy sources

Milan (Italy), 10 August 2009 – Terminale GNL Adriatico ("Adriatic LNG") today announced that the first Liquefied Natural Gas (LNG) cargo has arrived at the Adriatic LNG regasification Terminal located offshore of Porto Levante, Italy.
Since the arrival of the Terminal to Italy, in September 2008, key installation activities have been completed, leading to the arrival today of the first LNG carrier “Dukhan”. The cargo will be pumped into LNG piping and tanks inside the Terminal to cool them down for the LNG storage and ultimate regasification.  Following cool-down, the Terminal will commence gas distribution to the Italian gas system and will reach full operational capacity later in 2009.
The Adriatic LNG Terminal adds to Italy’s LNG import capacity and energy diversity, with the ability to deliver into the national gas grid up to 8 billion cubic meters per year, when it reaches full operational capacity. This is equal to approximately 10% of the country’s entire gas consumption.
Adriatic LNG is a company owned by Qatar Terminal Limited a Qatar Petroleum (QP) subsidiary (45%), ExxonMobil Italiana Gas (45%) and Edison (10%).  Eighty percent of the Terminal capacity will be utilized by Edison for a period of 25 years, to regasify LNG imported from Qatar’s North Field, as part of the supply agreement with Ras Laffan Liquefied Natural Gas Company Limited II (RasGas II). The remaining 20% is open for third party allocation, out of which 12% has been allocated according to the procedures defined by the Italian Ministry of Economic Development and the Regulatory Authority for Electricity and Gas.
The Terminal, the first offshore Gravity Based Structure in the world for unloading, storage and regasification of LNG, is designed around a large concrete structure, which houses two LNG tanks, and includes a regasification plant and facilities for mooring and unloading LNG vessels. The facilities are connected to the national network of gas distribution by a new pipeline.
“The Adriatic LNG Terminal will further expand Qatar's global reach and provide a diverse and secure energy supply for Italy,” commented Saad Sherida Al-Kaabi, Director Oil & Gas Ventures for Qatar Petroleum and Chairman of Adriatic LNG.  “The arrival of the first LNG cargo marks another notable milestone in Qatar's world-leading LNG business”.
Scott Miller, Managing Director of Adriatic LNG noted, “We are pleased to have reached this significant milestone that will lead to commencement of Terminal operations.  I am particularly satisfied by the dedication and safe work practices of the many employees and contractors who have contributed to the development of this unique world class facility”.
"ExxonMobil is proud to partner with Qatar Petroleum and Edison in developing the Adriatic LNG Terminal that will increase Italy’s LNG import capacity and provide cleaner-burning natural gas to help meet consumer demand” said Neil Duffin, president of ExxonMobil Development Company.  "Through advanced technologies, strong project execution expertise, and economies of scale, ExxonMobil is extending its ability to bring global LNG supplies to Italy and elsewhere around the world."
“Adriatic LNG Terminal is a milestone in our country’s energy history”, said Umberto Quadrino, CEO of Edison. “The terminal opens a new supply route from Qatar, a strategic country which has not been linked to Italy up to now. This new infrastructure and gas source contribute to improved energy security for Italy.  For Edison, this provides a more geographically diversified gas portfolio and continues progress toward our target of becoming fully independent in gas supply.”