April 20, 2024
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OIL & GAS

VTTI to Buy Exxon, QatarEnergy Stakes in Italy LNG Terminal Soon

According to sources, Vitol-backed energy storage company VTTI is close to getting a majority stake in Italy’s biggest liquefied natural gas import terminal from Exxon Mobil and QatarEnergy, EnergyAfrique gathered from Reuters.

This development comes in handy, as this is a time when flows of the liquefied gas to Italy are on the rise, the deal would give VTTI a role in the European LNG market. Before now, sources have said that the deal could value the entire terminal at about 800 million euros ($868 million).

As part of a strategy to divest non-core assets, Exxon put its 70.68% interest in the Adriatic LNG terminal up for sale last year. QatarEnergy owns a 22% stake.

Once a deal is signed, Italian gas grid operator Snam, which currently owns a 7.3% in the terminal, will have 45 days to decide whether to exercise its right of first refusal to increase its stake in the project.

The chief executive of state-controlled Snam said in January that based on agreement with shareholders, the group could increase its stake in the terminal, to as much as 30%. Last-minute surprises to VTTI’s purchase attempt could not be ruled out. Reuters gathered citing sources.

Investment manager BlackRock, in December bowed out of exclusive talks to acquire the asset, reopening the possibility for VTTI to buy it.

The Adriatic LNG terminal is located about 9 miles (15 km) off the Veneto coastline and has a regasification capacity of 9 billion cubic metres of natural gas per year.

It is the only Italian LNG terminal that can receive so-called super large-scale LNG vessels with a capacity of up to 217,000 liquid cubic meters.

VTTI and QatarEnergy were not available for comment, while Exxon did not respond to a request for comments.

 

 

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