Offshore LNG Toscana SPA (OLT) has awarded Saipem a $593m contract to convert the Golar Frost into a floating-storage and re-gasification unit that will be deployed offshore Livorno, Italy.

The contract covers all the necessary works to convert, install and commission the import terminal, while the contract also comes subsequent to Golar selling the Golar Frost to OLT at the end of 2007 for $231m.

Snam Rete Gas was also awarded a contract by OLT to construct the onshore and offshore sections of the gas pipeline that will connect the unit to Italy’s national grid. It is expected that once completed, the terminal's re-gasification capacity will be 3.75 billion cu, m per year of natural gas, equivalent to 5% of the nation’s annual demand.

The Livorno project developers expect the project to be operational by 2010.