Ravenna: PIR-Edison newco authorized to build the new LNG facility

The oil corporation has recently negotiated charter contract with Knutsen for the new gas carrier ordered Hyundai Mipo shipyard to be delivered in 2021

After having received final green light early this year, Edison & PIR (Petrolifera Italo Rumena) project, for the construction of a new LNG facility in Ravenna, has moved significantly ahead.

The two partners formally founded Depositi Italiani LNG newco, 51% controlled by the Ottolenghi family and 49% participated by the oil corporation, which in turn sealed a 20 year charter contract with Norwegian Knutsen to charter-in a new gas carrier (commissioned to South Korean shipyard) aimed at serving the terminal.

Depositi Italiani LNG will establish the new facility on an area in Porto Corsini controlled by PIR, holding concession on the same quay.

The new installation will start operating in 2021 offering 20,000 cubic metres LNG storage capacity and over 1 million cubic metres LNG annual handling capable to serve at least 12,000 trucks and up to 48 ferries per year.

Edison will be the major customer, actually taking 85% of the whole capacity, while the left volumes will be directly sold by the new joint-venture.

Edison CEO, Marc Benayoun, and PIR Managing Director, Guido Ottolenghi, were particularly proud of the new initiative and Pierre Vergerio, Executive Vice President Gas Midstream Energy Management at Edison, announced that Ravenna will be the first in a list of similar facilities (a further one will be built by Edison in Oristano, where Higas recently kicked-off the construction of a new site; Ed): “We target covering 25% of the whole Italian market by 2030 and Ravenna. We envisage this project will prevent handling 6 million tons C02 emissions”.

Along with the foundation of the new joint-venture with PIR, Edison also signed a 12-year charter contract with 8 years option, with shipowner Norwegian Knutsen OAS Shipping, shortlisted after a tender procedure which was allegedly also participated by the Italian PB Tankers.

The new charter contract refers to a 30,000 Cubic metres gas carrier especially manufactured by Knutsen at Hyundai Mipo yard , to be delivered by 2021.

The new dual-fuel ship will serve Ravenna- based installation already holding long-term LNG orders.

Edison was assisted by two legal advisor, Clifford Chance and Studio Longanesi.