Energy company Snam has partnered with US-based Edison to advance the development of the small-scale liquefied natural gas (ssLNG) market in Italy as a way to accelerate European decarbonisation targets.

Having signed a Memorandum of Understanding (MoU) on 25th July, the partners aim to harness the development of the Italian LNG sector to replace carbon intensive transport fuels such as diesel, in addition to scaling up the use of liquid biomethane (Bio-LNG).  

With LNG in the country being consumed at around 200,000 tonnes per year, such small-scale development initiatives are being deployed to grow the LNG and Bio-LNG market up to 1.5m tonnes per year by 2030.  

Referring mainly to the logistical activities associated with small-medium quantities of LNG and Bio-LNG, ssLNG is also being used to support off-grid industrial and household users.  

Commenting on the agreement, Stefano Venier, CEO, Snam, said, “Our aim is to extend the infrastructure needed to speed up the replacement of higher-emission vehicles, particularly in heavy goods and sea transport, and to enable the increased use of biomethane, in line with the European targets of the RePowerEU plan as well as with our mission of supporting the decarbonisation path.”  

As the ssLNG supply chain is developed further, the number of LNG filling stations is expected to increase from 130 to around 300 when fully operational.

The agreement will also see the partners work together on identifying and developing opportunities to collaborate along the entire ssLNG value chain, including truck loading servers, road or ship transport, and distribution via petrol stations or satellite depots.  

“Through this agreement we can further boost ssLNG market development as well as Bio-LNG usage in Italy, thus maximising our synergies with assets, projects, and skills; all elements Edison owns across the whole value chain,” added Nicola Monti, CEO, Edison.