Snam eyes Higas acquisition and FSRU conversion in LNG expansion move

Italy’s energy infrastructure operator Snam has made a play for Higas, a company that owns a liquefied natural gas (LNG) coastal storage facility in Oristano, Sardinia.

Snam has signed an agreement to initiate a period of exclusive assessment and negotiation regarding the potential acquisition of 100% of Higas’ share capital and the expansion and conversion of the current coastal storage facility into a floating storage and regasification unit (FSRU).

Upon finalization, the acquisition would enable the injection of regasified natural gas from the future FSRU Oristano into the upcoming natural gas transmission network, which is expected to serve the industrial and thermoelectric districts in central southern Sardinia, as well as end-users in the provinces of Cagliari, Oristano, Medio Campidano, and Sulcis Iglesiente.

The Italian player claims that the FSRU would also support the supply of natural gas volumes necessary for the methanization of Sardinia, while increasing storage capacity by approximately ten times with respect to current levels.

Roberto Madella, CEO of Higas, commented: “After years of intense work, we are pleased to be candidates to develop the regional natural gas hub. We warmly welcome the exclusivity agreement with Snam.

“It is a crucial step that will not only decisively strengthen Higas, but will also give a fundamental infrastructural boost for the methanization of the island, significantly enhancing the competitiveness of the Sardinian economic system.”

Last year, Snam increased its stake in the Adriatic LNG regasification terminal, operating in the waters off Porto Tolle (Rovigo), Italy. This LNG terminal is now owned by VTTI (70%) and the Italian firm (30%).