((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
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Exxon and QatarEnergy sell stakes in LNG terminal in Italy
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Snam could make a decision as early as next week on its participation
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Rome will examine the operation under the rules of the “golden power
(More details on Exxon’s divestment strategy and sources on possible Snam stake increase) by Francesca Landini
Dutch infrastructure group VTTI and German asset manager IKAV have teamed up to buy a majority stake in Italy’s largest liquefied natural gas terminal, VTTI said on Wednesday.
ExxonMobil doubling its LNG production by 2030 globally.
QatarEnergy is also selling its 22% stake in Italian infrastructure, according to three sources familiar with the matter. The group was not immediately available for comment.
Europe increased its LNG imports after Russia’s invasion of Ukraine in 2022, which significantly reduced the amount of gas delivered through pipelines.
LNG terminals are needed to transform liquefied fuel back into gas before pumping it into the network.
Italian gas network operator Snam SRG.MI , which currently holds a 7.3% stake in the infrastructure, has 45 days to decide whether to exercise its pre-emption right to increase its stake.
The state-controlled group could decide as early as next week to increase its stake to 30%, thereby strengthening its influence over an asset considered strategic for the country, two other sources told Reuters.
POWER IN GOLD
Rising global LNG flows have been a boon for energy traders including Trafigura, Gunvor and Vitol, which is a shareholder in VTTI alongside Australia’s IFM and Abu Dhabi’s ADNOC .
In a sign of LNG’s growing importance to energy companies, sources told Reuters on Tuesday that energy trader Mercuria would hire prominent gas trader Steve Hill, formerly head of LNG at Shell SHEL. L .
VTTI and IKAV did not disclose financial details of the Italian terminal deal, but sources said the transaction could value Adriatic LNG at more than 800 million euros, including debt.
Closing of the transaction for the terminal is expected in the second half of the year, VTTI said.
The Italian government will review the transaction under “golden power” rules applicable to sectors deemed of strategic importance, such as banking, energy, telecommunications and healthcare.
The Adriatic LNG terminal is located approximately 9 miles (15 km) offshore Veneto and has a regasification capacity of 9 billion cubic meters of natural gas per year.
Rothschild advised both sellers in the transaction, with Mizuho Securities acting as advisory bank for IKAV and Natixis Partners Iberia supporting the consortium.
Natixis and Intesa Sanpaolo acted as underwriters to finance the acquisition. Herbert Smith Freehills was the consortium’s legal advisor.