BW LNG has finalised the previously announced sale of FSRU I, the owner of the BW Singapore floating, storage and regasification unit (FSRU), to Italian energy infrastructure company Snam Group for a sum of around $400m.

The deal was announced by Snam in July 2022 with an aim to enhance Italy’s energy security and diversification.

The BW Singapore, which was constructed in 2015, is designed to function both as an liquefied natural gas (LNG) carrier and an FSRU. It was bound by a charter agreement with a third party until November 2023.

The vessel has a storage capacity of approximately 170,000m3 of LNG. Additionally, it has a regasification capacity of about five billion cubic metres per year.

To optimise its regasification potential, the BW Singapore FSRU will be positioned in the upper Adriatic Sea, about 8km off the coast of Italian province Ravenna, near the Punta Marina area.

Anticipated to commence operations in 2025, the FSRU will undergo the necessary permitting, regulatory processes, and infrastructure developments for mooring and connection to the transportation network, which are already underway.

BW LNG CEO Yngvil Åsheim said: “At BW LNG, we are committed to the development of floating LNG infrastructure solutions, as the world moves towards a low carbon society and countries look for sustainable, affordable, and reliable energy.”

In the upcoming months, Snam will initiate activities to secure contracts for LNG regasification capacity. This capacity is expected to progressively become available with the commencement of FSRU operations in 2025.

Snam CEO Stefano Venier said: “By finalising the BW Singapore acquisition, Snam takes another important step towards ensuring energy security and diversification of Italy’s energy supplies, in a challenging and constantly evolving global context.

“Together with the Golar Tundra, which started its operations in Piombino in July 2023, the two FSRUs will increase the country’s total regasification capacity from the current 25% to around 40% of the overall natural gas demand.”

The Golar Tundra is an FSRU that was acquired by Snam last year for $350m from Golar LNG. The vessel, which can also operate as an LNG carrier, has a storage capacity of nearly 170,000m³ of LNG.