Italians get gas and jobs
18 Nov 2002
The BG Group has received approval today to construct and operate a 330 million Euro liquefied natural gas (LNG) importation terminal in Brindisi Port on the south-east coast of Italy.
The regasification terminal, proposed 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 tonnes per annum (mtpa) increasing to 6 mtpa in the second phase.
Martin Houston, Executive Vice President, BG Group plc, said: 'Approval for the Brindisi project gives BG Group the go-ahead to make one of the largest ever investments in Italy by a UK-listed company.'
Italy is a net importer of natural gas and has one LNG receiving terminal in operation on the north-west coast of the country. Over the last decade, energy demand has been continually growing and in 2010 is forecast to be about 25-30% higher than today's present demand. Predominantly, this growth is expected from the power generation sector.
The Brindisi terminal, which would be the first to be built in the South, is strategically placed on the Mediterranean Sea coast to receive imports from North Africa and the Gulf States. Its location is in close proximity to reach those areas of high power generation demand in the Puglia region and surrounding regions.
The importation terminal is within five kilometres of Snam Rete Gas's 29,600 kilometres national gas transmission and distribution network.
Environmental impact and safety studies have been carried out which support the use of the Brindisi Port and harbour as having suitable deepwater marine facilities for a project of this scale. Preliminary Front End Engineering Design (FEED) work has been conducted and further work to finalise the plant design is under way. In addition, contractors are being pre-qualified for ground investigations.
It is estimated that up to 1,000 jobs could be generated during the construction phases and about 250 direct and indirect jobs created over the operational lifetime of the plant.
