Edison with Enagás for small scale LNG in the Mediterranean

Edison and Enagás will collaborate in the development of Small Scale LNG in the Mediterranean. As part of this wide industrial cooperation Scale Gas, a subsidiary of Enagás, enters into the Ravenna LNG coastal deposit.

Milan, October 23rd 2020 – Edison and Scale Gas Solutions, a subsidiary of Enagás specialized in small scale LNG, finalized the transaction that makes the Spanish Company a new shareholder of Depositi Italiani GNL (DIG). The two companies agreed to cooperate in the development of Small Scale LNG in the Mediterranean promoting the establishment of a strong LNG supply chain from Enagás’ Mediterranean LNG terminals, led by the Barcelona terminal, to Edison customers, fostering sustainability through the introduction of LNG as an alternative fuel.

In this framework, Scale Gas Solutions acquires from Edison 19% of the shares of Depositi Italiani GNL, the newco created in 2018 between Edison and PIR for the development and management of the first coastal deposit in Italy. After the transaction, the shareholding structure of Depositi Italiani GNL will be: 51% PIR, 30% Edison and 19% Scale Gas Solutions.

The partnership with Scale Gas Solutions will benefit from the experience and know-how gained by Enagás in the operations and management of LNG infrastructures in Spain and confirms the confidence in the development of the Small Scale market in Italy and in the Ravenna project.

The construction of the Ravenna deposit is advanced and the work has exceeded 70%, allowing the confirmation of a commercial operation date in October 2021. The Ravenna depot will have a storage capacity of 20,000 cubic meters of LNG and an annual handling capacity of over 1 million cubic meters of liquid gas sufficient to supply 12,000 trucks and up to 48 ferries per year.

Edison and Enagás consider Small Scale LNG to be a key solution towards sustainable mobility, the concrete action for the decarbonization of heavy road and maritime transport. Thanks to the zero emissions of particulate and Sulphur dioxides and the significant reduction in CO2 emissions, LNG will contribute to the achievement of the ambitious environmental targets set at international level for the transport sector.

“This transaction has a significant strategic value - declares Pierre Vergerio Executive Vice President Gas Midstream, Energy Management and Gas Infrastructures of Edison - it strengthens Edison-Enagás cooperation, that started more than two years ago for the construction of an integrated Small Scale LNG supply chain, and allows us to contribute in DIG with Scale Gas's specific skills in the Small Scale sector”.

Marcelino Oreja, CEO of Enagás, said that “collaborating in projects like this will allow the development of solid logistics chains from our terminals, and will promote, in accordance with EU directives, the implementation of sustainable mobility thanks to LNG in the Mediterranean”.

“We welcome the group Enagás, through its subsidiary Scale Gas Solutions, within the shareholding of DIG – says Guido Ottolenghi CEO of PIR – its presence will reinforce the competences of DIG and consolidate its market position within a network of leading operators in the field of LNG”.