SMALL SCALE LNG
First project promoting sustainable transport in Italy

Vessel refuelling, road transport and energy access in remote locations

After signing agreements with the PIR Group and Knutsen on November 30, Edison has launched the first Small-scale LNG (liquefied natural gas plants) integrated logistics chain in Italy, constructing a coastal depot in Ravenna and acquiring a vessel for transporting LNG.

What is Small-scale LNG

Liquefied Natural Gas (LNG) is obtained by cooling the gas to -160°C, after water and all other substances that would freeze if exposed to such low temperatures have been removed.

After transformation, the gas - in liquid form - has a much smaller volume and can be transported more easily along more flexible routes than gas pipeline networks, such as via the sea.

Once it has reached its destination, the liquefied natural gas can be used as a fuel for heavy-duty transport or can be stored in small-scale plants.

REDUCTION OF EMISSIONS OF LNG
  CO2 NOx SOx PM
Maritime transport 25% 90% ~100% ~100%
Road transport 20% 60% ~100% ~100%

CO2: Carbon dioxide / NOx: Nitrogen oxides / SOx: Sulphur oxides / PM: Particulates

Energy that makes transport more sustainable

The development of small-scale LNG is part of a positive and developing strategic context. In order to reach the long-term Paris COP 21 objective of reducing greenhouse gases and - more generally - cutting the Earth’s environmental impact, the G20 countries agreed on the role of natural gas as a means of achieving the energy transition.

Gas also plays a key role in reducing the environmental footprint of the transport sector (maritime and heavy-duty). The use of LNG in place of traditional fuels allows a significant reduction of greenhouse gas emissions and in some cases can virtually eliminate these emissions.

Policy chiefs and regulatory authorities at the international, European and national levels are promoting the use of this energy source through studies and recommendations, as in the case of the International Maritime Organisation and the Directive on Alternative Fuels Infrastructure, issued by the European Union and adopted by the Italian Parliament.

What does the first phase of the project involve

Edison's strategy is the first example of an integrated plan encompassing the procurement, storage and sale of liquefied natural gas through small-scale plants in Italy.

PRESS RELEASE

Ravenna coastal depot

The Ravenna depot will be built by Depositi Italiani GNL, the newco created with the PIR Group with the goal of making LNG accessible to the Italian market, thus promoting more sustainable mobility.

PRESS RELEASE

LNG transport vessel

The contract stipulated with Knutsen OAS Shipping agrees a 12-year charter of a 30,000 cubic metre LNG vessel (with option to extend for a further eight years) The vessel will replenish the LNG coastal depots by transporting gas from terminals all over Europe.

Sealing the agreements

The project officially began after agreements were signed on November 30, in the Shareholders’ Room at Palazzo Edison in Milan.

Present for Edison were Marc Benayoun, Chief Executive Officer, and the Head of the Gas Midstream, Energy Management Optimization Division Pierre Vergerio. The PIR Group was represented by Chief Executive Officer Guido Ottolenghi, while Managing Director Trygve Seglem was present for Knutsen.

The project in numbers

The operation launched by Edison represents the first example of an integrated plan for the procurement, storage and sale of liquefied natural gas through small-scale plants in Italy.

Asset 18

1 million cubic metres

LNG that the depot can handle per year

6 million

Tonnes of CO2 saved over the next 25 years

Asset 17

€100 million

Investment required to build the Ravenna depot