Shell Signs Development Agreement for LNG Terminal in Italy
Shell Energy Europe B.V. and ERG Power & Gas S.p.A. have signed an agreement for the development of a regasification terminal for Liquefied Natural Gas (LNG) in Italy. The envisaged site for the terminal is the industrial area of Priolo/Augusta/Melilli in the province of Syracuse in Sicily.
The terminal is planned for a capacity of ca. 8 billion cubic meters of gas per year and will require an investment of approximately € 400 million. Subject to the permitting process, construction is envisaged to begin in 2007 and the terminal is expected to be operational in 2010. The terminal will be developed according to the highest international technical and environmental standards.
With Italy being the third biggest European gas market, the LNG terminal plays an important role in Shell's European gas strategy and will provide an alternative source of gas supply to Italy. Michael O'Callaghan, CEO of Shell Energy Europe, said: "The envisaged LNG terminal is a further milestone in delivering on our global LNG and European gas strategies. We have started marketing activities in Italy last year and this project is proof of our serious and long-term commitment to the Italian gas market".
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