Edison

THE LNG PROJECT

The North Adriatic LNG Terminal

During the current decade, Italian consumption of natural gas, a valuable source of clean energy, is expected to increase by almost 50%, while domestic production is expected to decrease. As a result, virtually all of the new natural gas needed to meet demand will have to be imported. To address this challenge, Edison, in partnership with Exxon-Mobil and Qatar Petroleum, will build an offshore terminal in the North Adriatic Sea for LNG (liquefied natural gas) storage and regasification. This facility will provide Italy with a strategic infrastructure that will enable it to diversify its supply of natural gas while improving the flexibility and safety of the Italian energy system by reducing the need to use other, more polluting fuels. The terminal will have a regasification capacity of 8 billion cubic meters a year, 80% of which will be reserved for Edison.

Environmental Compatibility and Safety

LNG is natural gas that has been liquefied at a low temperature so that it may be shipped by sea. Currently, about 25% of international gas shipments use this well-tested, safe and reliable technology. Edison's marine LNG terminal will be built about 15 kilometers offshore, north-east of Punta della Maestra (province of Rovigo). The terminal will be the safest in the world because, in order to maximize the safety of the local population, it will be built farther from populated areas than any other facility of this kind. The terminal will not emit pollutants into the atmosphere and will not discharge harmful effluents into the sea.

Economic Benefits

The terminal will provide the Veneto region and Italy as a whole with an alternative, independent and cost-effective energy infrastructure that will deliver major benefits, making the Italian economy and its businesses more competitive. The LNG terminal will provide significant momentum for the development of the Veneto region. The resulting economic advantages will include the creation of a large number of jobs through direct and indirect employment, with a positive impact on local businesses. Moreover, all of the companies located in the Veneto region will benefit from access to low-cost energy and lower transmission costs. This strategic advantage will increase the companies’ competitiveness, both domestically and internationally, promoting growth and employment.

Edison signed a Supplemental Protocol in which it agreed to provide more favorable gas purchase terms to users located in the province of Rovigo; grant a preemptive right to purchase natural gas regasified at the terminal to industrial-district associations located in the Veneto region; cooperate with local administrations in the marketing and distribution of natural gas; and provide subsidies and financing to promote the social and economic development of the Po River Delta.

For further information please go to the Adriatic LNG website, or contact us.