Italy's gas grid group Snam SRG.MI said on Friday it expected a new liquefied natural gas (LNG) terminal to become operational by March 2025, allowing the country to diversify further its energy supplies.
The floating terminal in the Adriatic sea will have an annual regasification potential of 5 billion cubic metres (bcm), bringing Italy's total capacity to 28 bcm a year, or 45% of the country's gas demand in 2023.
The set up of the regasification unit dubbed BW Singapore, which envisages the building of both a platform offshore the costal city of Ravenna and a breakwater, is part of Italy's effort to replace Russian gas imports.
Snam said last year it would invest a total of around 1 billion euros ($1.1 billion) to buy and complete construction works for the energy infrastructure.
In a statement issued after an event in Ravenna, Snam said contracts worth around 300 million euros related to the new terminal had been awarded to local groups, with a positive effect on the regional economy.
($1 = 0.9177 euros)
(Reporting by Francesca Landini; Editing by Louise Heavens)